Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Semiannual Report of 2023
[August 29,2023]
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section I Important Information, Contents, and Definitions
The Company’s Board of Directors, Board of Supervisors,
directors, supervisors, and officers ensure that the content of
semiannual report is true, accurate, and complete without any false
record, misleading statement, or significant omission and bear joint
and several legal liability.
Wang Huan, the principal of the Company, Fu Chuanhai, the
person in charge of accounting, and Lei Lixin, the person in charge
of the accounting body (accounting supervisor), declare that the
financial report in this semiannual report is true, accurate, and
complete.
All directors attended the Board meeting at which this
semiannual report was considered.
The Company describes potential risks in its operations and
countermeasures in “X. Risks faced by the company and
countermeasures” in Section III, “The Management’s Discussion and
Analysis.” Investors are reminded to pay attention to the relevant
content.
This report is prepared in Chinese and English. Where the Chinese and
English texts are interpreted in different ways, the Chinese text shall prevail.
During the Reporting Period, There is no significant risk that has a
substantial impact on the production and business operation of the company.
Investors are requested to pay attention and read it carefully.
The Company plans not to distribute cash dividends, not to distribute
bonus shares, and not to convert reserves into share capital.
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Contents
Section I Important Information, Content, and Definitions..................................................................................2
Section II Section II Company Introduction and Key Financial Indicators..........................................................6
Section III The Management's Discussion and Analysis......................................................................................9
Section IV Corporate Governance......................................................................................................................17
Section V Environmental and Social Responsibility..........................................................................................18
Section VI Important Matters.............................................................................................................................19
Section VII Changes in Shares and Information on Shareholders......................................................................24
Section VIII Preferred Shares.............................................................................................................................28
Section IX Bonds................................................................................................................................................29
Section X Financial Report.................................................................................................................................30
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
List of Documents for Reference
(I) Financial statements with the signatures of the principal of the Company, the person in charge of accounting, and the
person in charge of the accounting body and affixed with the Company’s seal.
(II) The originals of all corporate documents and the manuscripts of all announcements disclosed during the Reporting
Period.
(III) The text of the company's 2023 semi-annual report containing the signature of the company's responsible person.
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Definitions
Term Refers to Content
Shandong Zhonglu Oceanic Fisheries
The Company, Company Refers to
Co., Ltd.
Shandong State-owned Assets
Shandong Guotou Refers to
Investment Holdings Co., Ltd.
The Semiannual report of 2023
This report Refers to
prepared by the Company
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section II Company Introduction and Key Financial Indicators
I. Company’s Information
Short stock name Zhonglu B Stock code 200992
Securities exchange where the
Shenzhen Stock Exchange
stocks are listed
Chinese name 山东省中鲁远洋渔业股份有限公司
Short Chinese name (if any) 中鲁远洋
Foreign name (if any) Shandong Zhonglu Oceanic Fisheries Company Limited
Acronym of the foreign name
ZLYY
(if any)
Legal representative Wang Huan
II. Contact Person and Contact Information
Board Secretary Securities Affairs Representative
Name Liang Shanglei Tang Yuntao
25th Floor, Building 1, Guoxin Financial 25th Floor, Building 1, Guoxin Financial
Address Center, No. 31 Xianxialing Road, Center, No. 31 Xianxialing Road,
Laoshan District, Qingdao, Shandong Laoshan District, Qingdao, Shandong
Tel 0532-55717968 0532-55715968
Fax 0532-55719258 0532-55719258
Email zl000992@163.com zl000992@163.com
III. Other information
1. Contact information of the company
Has the registered address, office address, postal code, website, email address, etc. of the company changed during the reporting
period
Applicable Not applicable
The company's registered address No 31, Xianxialing Road, Qingdao, Shandong Province
The postal code of the company's registered address 266061
25th Floor, Building 1, Guoxin Financial Center, No. 31,
The company's office address Xianxialing Road, Laoshan District, Qingdao, Shandong
Province
The postal code of the company's office address 266061
The company's website http://www.zofco.cn/
The company's email box zl000992@163.com
Query date of designated website for temporary announcement
May 26, 2023
disclosure (if any)
Query index for designated website for temporary
http://www.cninfo.com.cn
announcement disclosure (if any)
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
2.Information disclosure and preparation location
Has the information disclosure and preparation location changed during the reporting period
Applicable Not applicable
The website and media name and website of the stock exchange where the company discloses its semi-annual report, and the
preparation location of the company's semi-annual report remain unchanged during the reporting period, as detailed in the 2022
annual report.
3. Other relevant information
Is there any change in other relevant information during the reporting period
Applicable Not applicable
IV. Key Accounting Data and Financial Indicators
Whether the Company is required to make retroactive adjustments or restate the accounting data for previous years
□Yes No
Increase/decrease of current
reporting period compared
Current reporting period Same period of previous year
with the same period of
previous year
Operating revenue (RMB) 454,219,264.20 370,548,994.76 22.58%
Net profits attributable to the
Company’s shareholders -10,201,333.02 -9,019,125.78 -13.11%
(RMB)
Net profits attributable to the
Company’s shareholders after
-12,246,427.51 -15,517,270.20 21.08%
deducting nonrecurring items
(RMB)
Net cash flows from operating
-54,465,959.61 -68,718,086.21 20.74%
activities (RMB)
Base earnings per share
-0.0383 -0.0339 -12.98%
(RMB/share)
Diluted earnings per share
-0.0383 -0.0339 -12.98%
(RMB/share)
Weighted average return on
-1.04% -0.96% -0.08%
equity
Increase/decrease at the end
End of current reporting of current reporting period
End of previous year
period compared with that at end of
previous year
Total assets (RMB) 1,988,776,945.81 1,838,429,134.17 8.18%
Net assets attributable to the
Company’s shareholders 983,964,081.69 987,072,734.95 -0.31%
(RMB)
V. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences in net profits and net assets in the financial report disclosed both according to
international accounting standards and Chinese accounting standards
□Applicable Not applicable
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
For the Company, there was no difference in net profits and net assets in the financial report disclosed both according to
international accounting standards and Chinese accounting standards during the Reporting Period.
2. Differences in net profits and net assets in the financial report disclosed both according to overseas
accounting standards and Chinese accounting standards
□Applicable Not applicable
For the Company, there was no difference in net profits and net assets in the financial report disclosed both according to overseas
accounting standards and Chinese accounting standards during the Reporting Period.
VI. Non-recurring profit and loss items and amounts
Applicable Not applicable
Unit:RMB
Item Amount Remark
Government grants recognized in profit
or loss (closely related to the Company’s
business, government grants that meet
1,528,046.31
the standards of national policies and are
received in a certain quota or quantity
according to unified national standards)
Trustee income from trusteeship 849,056.60
Other non-operating incomes and
526,435.99
expenditures than the above
Less: amount of the effect of the income
133,125.10
tax
amount of the effect of the minority
725,319.31
interest (after tax)
Total 2,045,094.49
Details of other profit/loss items that conform to the definition of nonrecurring items:
□Applicable Not applicable
For the Company, there was no detail of other profit/loss items that conform to the definition of nonrecurring items.
Explanation of the situation where the nonrecurring items listed in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Securities to the Public - Nonrecurring Items are defined as recurring items
□Applicable Not applicable
The Company had no situation where it defined the nonrecurring items listed in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering Their Securities to the Public - Nonrecurring Items as recurring items.
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section III The Management’s Discussion and Analysis
I. Company’s Main Businesses during the Reporting Period
During the Reporting Period, the Company’s main businesses included long range fishing, Ocean shipping, and cold
storage processing and trading. Rely on and promote each other, forming a complete industrial chain.
1. Long range fishing
During the Reporting Period, the Company had 27 long range fishing boats, including 9 sets of large tuna seiners, 14 large
ultra-low temperature tuna longliners, 2 medium-sized trawlers, and 2 squid fishing boats, which were operated in the Indian
Ocean, the Atlantic, and the Pacific, respectively. (1) In terms of longline fishing, the Company’s boats mainly worked in the
Indian Ocean, Affected by factors such as global climate during the same period last year, the production of longline fishing was
relatively low. During this reporting period, there has been a significant increase in production compared to the same period last
year. ②In terms of seine fishing operations,the main operating area is in the Atlantic Ocean. Due to the impact of marine
environment such as seawater temperature and currents, the yield of seining fishing in this period has slightly decreased compared
to the same period last year. ③In terms of squid fishing boat operations,in the first half of the year, squid fishing boats transferred
from Argentine fishing grounds to Peruvian fishing grounds, with fewer days of operation and lower total production. ④The
company's trawlers were undergoing replacement, thus production has not been carried out.
2.Ocean shipping
During the reporting period, the company's 8 ships were engaged in ocean shipping business, of which 7 had a displacement
of over 8000 tons. Its service area covers most of the waters of the Pacific, Indian Ocean, and Atlantic Ocean. The ships are
equipped advanced equipment, their performance is excellent, management is strict and services are standard, and they are used
for ocean freezing and refrigerated transportation of aquatic products, meat and poultry, vegetables and fruits.
3.Refrigerated processing trade
During the reporting period, the company's refrigerated processing trade sector faced severe situations such as complex and
volatile industry in 2023, sluggish international and domestic market demand, increasingly fierce market competition, and
significant drop in raw material prices. Its focus was mainly to adjust inventory structure, fully utilize the "two markets and two
resources" of both international and domestic markets, and stabilize market share. There are more than 20 varieties of tuna
processed in this section, including big eye, yellow fin, blue fin, long fin, sword flag, red flag, black flag, etc. They are processed
into tuna slices, chops, and plates. The products are mostly exported to Japan, the United States, Russia, the European Union,
South Korea, and Israel. The Company has passed the HACCP, EU, BRC, MSC, and SEDEX certifications. In the domestic
market, the Company has built a sales network where WeChat commerce, e-commerce, supermarkets, and distributed warehouses
integrate with each other to form a system, and has established a diversified and three-dimensional product system including
cooked food products, health food, and skincare products, which has laid a foundation for the company to further open up the
domestic consumer market for deep and far seawater products for tuna and others, and lead the domestic market in consumption
upgrading and dietary structure transformation. The transformation of online and offline "double line" sales model has been
accelerated and online Tiktok live broadcast has been launched to actively follow the trend of the "Internet plus" era, constantly
use new platforms to explore new technologies, research and develop new products, establish a diversified three-dimensional
product system, implement the "double line" sales model, create a "100-city and 1000- outlet" sales pattern, making the high-
quality brand image of "Zhonglu Tuna" penetrate into thousands of households,and enable more Chinese people eat deep blue,
green, healthy, and perfect tuna.
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Business model: The Company conducts business in a centralized and diversified manner.
Market position: China’s top five oceanic fishery companies, the vice-presidential unit of the China Overseas Fisheries
Association, and the presidential unit of the Qingdao Overseas Fisheries Association.
II. Analysis of Core Competitiveness
The Company is a comprehensive and export-oriented company engaged in overseas fishing that was incorporated in July
1999 with the approval of the Shandong Provincial People’s Government. It has a well-established industrial chain and is a leading
enterprise in Shandong’s overseas fishing industry. As a comprehensive listed fishing company, the Company’s core
competitiveness lies in the following aspects: (1) Through more than 20 years of development, the Company has grown into a
comprehensive fishing enterprise that is engaged in a combination of businesses, including overseas fishing, deep processing,
trading, cold storage logistics, Ocean shipping, the development and production of marine biomedicines, and entrepreneurship and
investment in the modern marine industry. The Company’s main businesses involve key links in the industrial chain. The
businesses of the Company’s operating entities are highly associated, which meets the conditions for holistically collaborative
operations. This provides a guarantee for the Company to reform its operations and strengthen and extend the industrial chain. (2)
As one of the earliest companies engaged in overseas fishing in China, the Company started production and operations early from
a high ground with competent human resources and assets. Through years of dedicated operations, the Company has gathered a
pool of professionals specializing in relevant fields. (3) Long range fishing industry is part of China’s strategy of "going global"
and building a strong marine country, and Shandong’s strategy of building a strong marine province. There are development
opportunities from the adjustment of the industrial depth. The Company has 14 ultra-low temperature tuna fishing boats engaged
in the longline fishing of tuna in the Indian Ocean. This is one of the Company’s main businesses, making outstanding
contributions to the Company’s business performance over the years. The Company’s tuna seining project in the Atlantic can
maintain the steady development of its tuna seining under the protection of ICCAT's strict rules. (4) Ocean shipping is an
important part of the Company’s main businesses. The Company’s current cold storage transportation fleet is among the industry’s
top in the Southeastern transportation market, in terms of the number of vessels, total tonnage, and profitability. (5) The Company
has the earliest and largest ultra-low temperature refrigeration storage and raw food processing plant in China. Also, the China
Tuna Exchange and the newly built electronic tuna trading platform system strengthen the Company’s in tuna processing and
trading. (6) The Company carries out long range fishing in the Atlantic the Pacific and Indian Oceans, reaches most of the world’s
major ports with its Ocean shipping, and covers many countries with import and export. With the implementation of the “Belt and
Road” strategy, the countries along the “Belt and Road” will have stronger trust in each other and establish closer cooperation. In
addition, the Company and the governments at all levels have rolled out a suite of development plans and industrial preference
policies. All these have brought new opportunities for the development of the Company. The Company will leverage the
aforementioned advantages to pioneer, innovate, forge ahead, and proactively engage itself in the conversion of old and new
growth drivers. It will accelerate strategic transformation, vigorously extend the industrial chain, and further improve its influence
and competitiveness in domestic and even international markets.
III. Analysis of Main Businesses
1. Overview
Refer to “I.Company’s Main Businesses during the Reporting Period”
Year-on-year changes in major financial data
Unit:RMB
Year-on-year increase
This reporting period Same period last year or decrease Reason for change
Operating income 454,219,264.20 370,548,994.76 22.58%
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Operating costs
436,204,233.19 365,817,738.76 19.24%
Sales expenses Due to the increase in
1,891,807.78 1,445,349.37 30.89%
fish sales in this period
Administrative
expenses 29,182,163.89 25,639,725.37 13.82%
Financial expenses -2,923,061.46 -2,632,280.81 -11.05%
Due to the increase in
refrigeration revenue
Income tax expenses and management
1,099,110.53 358,112.38 206.92%
service revenue in this
period
Increase in research
and development
R&D investment
659,005.73 332,543.96 85.08% expenditure in this
period
Net cash flow
generated from
-54,465,959.61 -68,718,086.21 20.74%
operating activities
Net cash flow
generated from Loan for current
-157,543,076.25 -9,566,993.27 -1,546.74%
investment activities shipbuilding projects
Net cash flow
generated from Loan for current
159,706,492.74 79,756,048.11 100.24%
financing activities shipbuilding projects
Net increase in cash
and cash equivalents -50,682,108.60 3,286,825.12 -1,641.98%
Significant changes in the composition or source of profits of the company during the reporting period
Applicable Not applicable
There have been no significant changes in the composition or source of profits of the company during the reporting period.
Composition of operating income
Unit:RMB
This reporting period Same period last year Year-on-year
increase or
Proportion in Proportion in decrease
Amount Amount
operating revenue operating revenue
Total operating
454,219,264.20 100% 370,548,994.76 100% 22.58%
revenue
By industry
Long range fishing 184,991,696.92 40.73% 111,100,654.53 29.98% 66.51%
Ocean shipping 63,548,295.62 13.99% 48,813,484.03 13.17% 30.19%
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Cold storage
processing and 242,865,824.14 53.47% 247,788,335.98 66.87% -1.99%
trading
Others 3,395,000.15 0.75% 2,454,621.20 0.66% 38.31%
Internal offset -40,581,552.63 -8.93% -39,608,100.98 -10.69% 2.46%
By product
Long range fishing 184,991,696.92 40.73% 111,100,654.53 29.98% 66.51%
Ocean shipping 63,548,295.62 13.99% 48,813,484.03 13.17% 30.19%
Cold storage
processing and 242,865,824.14 53.47% 247,788,335.98 66.87% -1.99%
trading
Others 3,395,000.15 0.75% 2,454,621.20 0.66% 38.31%
Internal offset -40,581,552.63 -8.93% -39,608,100.98 -10.69% 2.46%
By region
China 335,496,370.26 73.86% 177,120,804.22 47.80% 89.42%
Foreign countries 118,722,893.94 26.14% 193,428,190.54 52.20% -38.62%
Industries, products, or regions that account for more than 10% of the company's operating revenue or profit
Applicable □ Not applicable
Unit:RMB
Year-on-year Year-on-year Year-on-year
Operating Gross profit increase/decrea increase/decrea increase/decrea
Operating costs
revenue margin se in operating se in operating se in gross
revenue costs profit margin
By industry
Long range
184,991,696.92 196,183,179.05 -6.05% 66.51% 55.52% 7.49%
fishing
Ocean shipping 63,548,295.62 51,140,020.97 19.53% 30.19% 11.97% 13.10%
Cold storage
processing and 242,865,824.14 228,529,277.69 5.90% -1.99% -1.72% -0.25%
trading
By product
Long range
184,991,696.92 196,183,179.05 -6.05% 66.51% 55.52% 7.49%
fishing
Ocean shipping 63,548,295.62 51,140,020.97 19.53% 30.19% 11.97% 13.10%
Cold storage
processing and 242,865,824.14 228,529,277.69 5.90% -1.99% -1.72% -0.25%
trading
By region
China 335,496,370.26 322,682,269.88 3.82% 89.42% 79.33% 5.41%
Foreign
118,722,893.94 113,521,963.31 4.38% -38.62% -38.93% 0.48%
countries
When the statistical caliber of the company's main business data is adjusted during the reporting period, the company's main
business data for the most recent period adjusted based on the caliber at the end of the reporting period
□Applicable Not applicable
IV. Analysis of Non-main Businesses
Applicable □Not applicable
Unit:RMB
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Proportion in total Whether it is
Amount Reasons of formation
profits sustainable
Investment losses on
Investment income -253,775.04 1.90% No
associated enterprise
Accrued inventory
Asset impairment -2,699,370.85 20.22% No
depreciation provision
Insurance
Non-operating income 529,150.50 -3.96% No
compensation income
Non-operating Equipment scrapping
2,714.51 -0.02% loss No
expenses
V. Analysis of Assets and Liabilities
1. Significant changes in asset components
Unit:RMB
This reporting period end Same period last year Explanation of
Increase/Decrea
significant
Proportion in Proportion in se (%)
Amount Amount changes
total assets total assets
Monetary
176,582,233.71 8.88% 227,264,342.31 12.36% -3.48%
capital
Accounts
49,649,021.78 2.50% 57,833,671.83 3.15% -0.65%
receivable
Inventory 514,432,161.66 25.87% 426,125,273.33 23.18% 2.69%
Investment
28,119,817.73 1.41% 28,782,856.07 1.57% -0.16%
property
Long-term
equity 1,730,148.44 0.09% 1,983,923.48 0.11% -0.02%
investment
Mainly due to
1,046,244,239. the transfer of
Fixed assets 52.61% 630,970,963.32 34.32% 18.29%
75 seining boats
into fixed assets
Mainly due to
Construction in the transfer of
51,354,770.09 2.58% 344,727,296.32 18.75% -16.17%
progress seining boats
into fixed assets
Right-of-use
351,952.31 0.02% 410,045.97 0.02%
assets
Mainly due to
Short-term an increase in
87,441,269.40 4.40% 20,024,144.40 1.09% 3.31%
borrowings working capital
borrowings
Contractual
56,718,860.93 2.85% 49,576,606.91 2.70% 0.15%
liabilities
Mainly due to
an increase in
Long-term
386,430,361.46 19.43% 283,557,577.77 15.42% 4.01% borrowing for
borrowings
shipbuilding
projects
Lease liabilities 186,871.11 0.01% 0.01%
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2.Major overseas assets
Applicable □Not applicable
Proportion
Control Whether
of overseas
Specific Operation measures to Return on there is any
Reasons of assets in
content of Asset size Location model guarantee assets significant
formation the
assets asset impairment
Company’s
security risk
net assets
HABITAT
Wholly-
INTERNA
owned Vessel and
TI 310,428,06 Panama Independen 9,907,
subsidiary personnel 24.98% No
ONAL 9.01 t operations 703.20
incorporate insurance
CORPORA
d overseas
TION
Professiona
l
manageme
ZHONG
Wholly- nt team
GHA
owned stationed -
FOODS 138,189,16 Independen
subsidiary Ghana overseas 3,155,925.8 11.12% No
COMPAN 9.76 t operations
incorporate and vessel 8
Y
d overseas and
LIMITED
personnel
insurance
3. Assets and liabilities measured at fair value
□Applicable Not applicable
4. Restrictions over asset rights as of the end of the Reporting Period
Item Period-end book value Reasons
Fixed assets 474,879,441.40 Mortgage loans
Intangible assets 4,676,999.00 Mortgage loans
Construction in progress 15,566,963.14 Mortgage loans
Total 495,123,403.54
VI. Investment Analysis
1. Overview
Applicable □Not applicable
Investment amount for the Reporting Investment amount for the same period
Changes (%)
Period (RMB) in the previous year (RMB)
157,096,476.37 15,432,021.04 917.99%
2. Significant equity investment acquired during the Reporting Period
□Applicable Not applicable
3. Significant non-equity investment in progress during the Reporting Period
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Applicable □Not applicable
Unit:RMB
Reasons
Total for
actual Total failure
Wheth Invest
Industr invest income to reach
er it is ment
ies ment realized the Disclo
Invest an amoun Expect
involv amoun Project as of the planned Disclosu sure
Project ment invest t for Fund ed
ed in t as at progre end of progress re date index
name metho ment the source invest
the the end ss the and (if any) (if
d in Report ment
invest of the Reporti realize any)
fixed ing
ment Report ng the
assets Period
ing Period expecte
Period d
income
Self- The
Constructi owned designe
Self- 45,59 376,3
on of two Fisher fund 100.0 d
constr Yes 1,103 60,43
large tuna y and 0% capacity
uction .1 9.54
seiners bank is
loans reached.
Proces
sing
and
trading Self- The
Zhonglu
of owned designe
Marine Self- 19,13 92,57
aquatic fund 10.00 d
Innovation constr Yes 7,396 8,345
produc and % capacity
Industry uction .21 .96
ts and bank is not
Park
cold loans reached.
chain
logisti
cs
64,728 468,93
合计 -- -- -- ,499.3 8,785. -- -- 0.00 0.00 -- -- --
2 50
4. Financial asset investment
(1) Securities investment
□Applicable Not applicable
The Company did not have securities investments during the Reporting Period.
(2) Derivative investment
□Applicable Not applicable
The Company did not have derivative investments during the Reporting Period.
5. Use of raised funds
□Applicable Not applicable
VII. Sale of Significant Assets and Equity
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
1. Sale of significant assets
□Applicable Not applicable
The Company did not sell any significant assets during the Reporting Period.
2. Sale of significant equity
□Applicable Not applicable
VIII. Analysis of Key Shareholding Companies
Applicable □Not applicable
Key subsidiaries and shareholding companies affecting the Company’s net profits by more than 10%
Unit:RMB
Company Main Registered Operating Operating
Company name Total assets Net assets Net profits
type business capital revenue profits
Shandong
Zhonglu
Ocean 22,505,600. 35,728,798. 24,364,210. 11,540,923. 1,733,956.8 1,258,551.7
Aquatic Subsidiary
shipping 00 15 85 97 7 6
Shipping Co.,
Ltd
Shandong
Zhonglu
Food 104,322,30 512,098,30 345,186,97 242,865,82 6,147,085.8 5,523,380.4
Oceanic Subsidiary
processing 0.00 4.39 6.03 4.14 3 1
(Yantai) Food
Co., Ltd.
HABITAT
INTERNATIONA Ocean 12,476,145. 310,428,06 214,373,55 55,063,975. 9,907,703.2 9,907,703.2
Subsidiary
L shipping 60 9.01 1.92 41 0 0
CORPORATION
Shandong
Zhonglu
- -
Haiyan Ocean 221,617,34 541,408,18 399,559,68 123,113,71
Subsidiary 14,612,350. 14,083,529.
Oceanic fishing 9.00 5.32 3.29 6.41
35 85
Fisheries Co.,
Ltd.
Acquisition and disposal of subsidiaries during the Reporting Period
□Applicable Not applicable
Information of key shareholding companies
Shandong Zhonglu Haiyan Oceanic Fisheries Co., Ltd.: Operating profits for the Reporting Period reached RMB-
14,612,350.35, representing a substantial increase of 27.16% year-on-year, which was mainly due to the increase in production
from seining and the rising sales prices;
Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd.: Operating profits for the Reporting Period reached RMB6,147,085.83,
representing a decrease of 32.18% year-on-year, which was mainly because:The market capacity in major consumer regions such
as Japan is shrinking and prices continue to decline, causing a significant impact on exports of tuna and other products;
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
HABITAT INTERNATIONAL CORPORATION: Operating profits for the Reporting Period reached RMB9,907,703.20,
representing a substantial increase of 172.83% year-on-year, which was mainly due to more lease incomes from new cold storage
transportation vessels and exchange rate changes.
Shandong Zhonglu Aquatic Shipping Co., Ltd .: Operating profits for the Reporting Period reached
RMB1,733,956.87, representing a decrease of 63.60% year-on-year, which was mainly because:The disposal of transportation
ships generated a disposal income of 5.11 million yuan in the same period last year.
IX. Structured Entities Controlled by the Company
□Applicable Not applicable
X. Risks facing the Company and countermeasures
1. Risk of fishing resource fluctuations: Fishing resources usually fluctuate, and sometimes the fluctuations are big. Greater
decreases in fishing resources will have a greater impact on the Company’s profits. Cyclic changes, climates, hydrological
conditions, and other relevant conditions are all likely to cause fluctuations in fishing resources.
Countermeasures: Firstly, actively open up new fishing grounds and scientifically dispatch fishing grounds for vessel
operations; Secondly, update fishing production equipment, gradually update production vessels, strengthen logistics support for
ship maintenance, equipment repair, supplies, bait, spare parts, and personnel, and ensure the ship departure rate.
2. Risk of price fluctuations: Demand from overseas markets is shrinking in the context of the economic downturn, causing
lingering impacts on the aquatic processing industry , fish product prices fluctuate substantially
Countermeasures: The Company will accelerate the building of a new paradigm focusing on domestic circulation with mutual
promotion between domestic and international circulations. It will precisely target the domestic market, develop cooked products
that accommodate consumers’ needs, and expand domestic sales channels.
3．The risk of exchange rate fluctuations. Affected by factors such as the Federal Reserve's interest rate hike, exchange rate
fluctuations are significant.
Countermeasures: The company will closely monitor the exchange rate trend and settle foreign exchange in a timely manner;
At the same time, strengthen cooperation with financial institutions in exchange rate risk management, and adjust the balance of
foreign currency assets held to the extent possible. If necessary, use hedging tools to mitigate foreign exchange risks.
4. Risk of safety accidents.
Countermeasures: The Company will uphold the production safety policies, implement production safety measures, conduct
safety education regularly, prevent major safety accidents, and make tangible efforts to place production safety as a top priority.
5.The risk of a significant increase in company oil costs. In the future, oil prices will continue to remain high. In recent years,
the company's fleet has expanded, and the demand for oil has further increased. The pressure on operating costs caused by the rise
in oil prices will be more significant.
Countermeasures: Improve the refined management level, reduce ineffective sailing time and improve the efficiency of vessel
operations by properly arranging vessel transfer operations, selecting nearby dock repair locations, and improving the precise
positioning ability of shoals of fish.
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Section IV Corporate Governance
I. Relevant information on annual and extraordinary shareholders' meetings held during
the reporting period
1. Situation of the shareholders' meeting during this reporting period
Investor
Session Type Date of holding Date of disclosing Resolution
participation ratio
Refer to the
Announcement on
the Resolution of
the Annual
general meeting
General Meeting
Annual general Annual general of Shareholders in
47.63% May 25, 2023 May 26, 2023
meeting 2022 meeting 2022
(Announcement
No. 2023-14)
disclosed in the
China Securities
Journal, and
CNINFO
2. Preferred shareholders with restored voting rights request to convene an extraordinary shareholders'
meeting
□Applicable Non applicable
II. Information on the directors, supervisors, and senior management of the company
Applicable □Non applicable
Name Position Type Date Reason
Lu Lianxing Chairman of the board Leaving office May 06, 2023 Work adjustment
III. The Company's profit distribution and capitalization of capital reserves
□Applicable Not Applicable
The Company plans not to distribute cash dividends or bonus shares, or increase share capital from public reserves.
IV. Implementation of the Company's equity incentive plan, employee stock ownership plan
or other employee incentive measures
□Applicable Not Applicable
During the reporting period, the Company had no equity incentive plan, employee stock ownership plan or other employee
incentive measures and their implementation.
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Section V Environmental and Social Responsibility
I. Major environmental issues
Whether the listed company and its subsidiaries belong to the key pollutant discharge enterprises announced by the environmental
protection department
□ Yes No
Administrative penalties due to environmental issues during the reporting period
The impact on the
The company's
Company or Reason for production and
Violation Penalty result corrective
Subsidiary Name punishment operation of listed
measures
companies
none none none none none none
Other environmental information disclosed by reference with key pollutant discharge units
not applicable
Measures and effects taken to reduce its carbon emissions during the reporting period
□Applicable Not Applicable
Reasons for not disclosing other environmental information
The Company and its subsidiaries do not belong to the key pollutant discharge enterprises announced by the environmental
protection department.There is no other environmental information that needs to be disclosed.
II. Social Responsibility
The Company always regards assuming social responsibility and supporting social welfare as one of the core values of the
enterprise, and practices corporate social responsibility by respecting employees' rights, preventing pollution, promoting
sustainable utilization of resources, and paying attention to participating in public welfare undertakings.
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Section VI Important Matters
I. Commitments fulfilled by the Company’s actual controller, shareholders, related parties,
acquirers, the Company and other relevant parties, and commitments that commitments
that have not been fully fulfilled as of the end of the reporting period
□Applicable □Not applicable
There are no commitments made by the actual controllers, shareholders, related parties, acquirers, and other related parties of the
company during the reporting period that have been fulfilled or have not been fulfilled by the end of the reporting period.
II. Non-operating capital occupation of listed companies by controlling shareholders and
other related parties
□Applicable Not Applicable
During the reporting period of the Company, there was no non-operating capital occupation of listed companies by controlling
shareholders and other related parties.
III. Illegal external guarantees
□Applicable Not Applicable
The Company had no external guarantees in violation of regulations.
IV. Appointment and dismissal of accounting firms
Has the semi-annual financial report been audited
□ Yes No
The company's semi-annual report has not been audited.
V. Explanation of the board of directors, board of supervisors on the “non-standard audit
report” of the accounting firm for the reporting period
□Applicable Not Applicable
VI. Explanation by the board of directors on the relevant situation of the "non-standard
audit report" of the previous year
Applicable Not applicable
VII. Matters related to bankruptcy and reorganization
□Applicable Not Applicable
During the reporting period, there were no matters related to bankruptcy and reorganization of the Company.
VIII. Litigation matters
Major litigation and arbitration matters
□Applicable Not applicable
During this reporting period, the company has no major litigation or arbitration matters.
Other litigation matters
□Applicable Not applicable
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IX. Punishment and rectification
□Applicable Not Applicable
X. Integrity status of the Company and its controlling shareholders and actual controllers
Applicable □ Not applicable
The Company, its controlling shareholders and actual controllers did not fail to perform effective court judgments, or owe large
amounts of debts that were due and unpaid.
XI. Significant connected transactions
1. Connected transactions related to daily operations
□Applicable Not Applicable
During the reporting period of the Company, there was no connected transaction related to daily operation.
2. Connected transactions in the acquisition and sale of assets or equity
□Applicable Not Applicable
During the reporting period, there was no connected transaction involving asset or equity acquisition or sale.
3. Connected transactions of joint foreign investment
□Applicable Not Applicable
During the reporting period, there was no connected transaction involving joint external investment.
4. Related creditor's rights and debts
□Applicable Not Applicable
During the reporting period, the company had no related creditor's rights and debts.
5. Contacts with associated financial companies t
□Applicable Not Applicable
There is no deposit, loan, credit or other financial business between the Company and associated financial company or the related
party.
6. Communications between financial companies controlled by the Company and related parties
□Applicable Not Applicable
There is no deposit, loan, credit or other financial business between the financial company controlled by the Company and related
parties.
7. Other major connected transactions
□Applicable Not applicable
There were no other significant related party transactions during the reporting period of the company.
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XII. Significant contracts and their performance
1. Matters concerning trusteeship, contracting and leasing
(1) Trusteeship
Applicable □ Not applicable
Explanation on trusteeship
April 2022 , the Company has been entrusted by Shandong State-owned Assets Investment Holding Co., Ltd. to manage its
subsidiary Zhongtai Xincheng Asset Management Co., Ltd. (hereinafter referred to as "Zhongtai Xincheng"); as the shareholder
proxy of Zhongtai Xincheng, the Company shall comply with relevant provisions of the entrusted management agreement.
Zhongtai Xincheng is not included in the scope of the Company's consolidated statements.
Projects that bring profit or loss to the Company amounting to more than 10% of the Company's total profit in the reporting period
□Applicable Not Applicable
During the reporting period of the Company, there was no trusteeship project which brings profit or loss for the Company
amounting to more than 10% of the total profit of the Company.
(2) Contracting status
□Applicable Not Applicable
There was no contracting in the reporting period of the Company.
(3) Lease situation
□Applicable Not Applicable
There was no lease in the reporting period of the Company.
2. Major guarantee
Applicable □Not Applicable
Unit:RMB 10,000
External guarantees provided by the company and its subsidiaries (excluding guarantees provided to subsidiaries)
Disclosu
re date
of Counter Has the Is it a
Name of relevant Actual Actual guarante performa guarante
Guarante Guarante Collatera Guarante
guarante announc occurren guarante e nce e for
e line e type l (if any) e period
e object ements ce date e date situation complete related
on (if any) d or not parties
guarante
e line
The company’s guarantee for subsidiaries
Name of Disclosu Actual Actual Counter Has the Is it a
Guarante Guarante Collatera Guarante
guarante re date occurren guarante guarante performa guarante
e line e type l (if any) e period
e object of ce date e date e nce e for
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relevant situation complete related
announc (if any) d or not parties
ements
on
guarante
e line
Three
Shandon
years
g
Joint and from the
Zhonglu
several day after
Oceanic June 03, May 30,
25,046 25,046 liability the No No
Fisheries 2023 2023
guarante expiratio
Food
e n of the
(Yantai)
loan
Co., Ltd
term
Total approved Total actual amount
guarantee lines for of guarantee for
subsidiaries 300,000 subsidiaries during 26,763
(B1)during the the reporting period
reporting period (B2)
Total actual amount
Total approved
of guarantee balance
guarantee lines for
for subsidiaries at
subsidiaries at the 300,000 36,113
the end of the
end of the reporting
reporting period
period (B3)
(B4)
Guarantee of subsidiaries for subsidiaries
Disclosu
re date
of Counter Has the Is it a
Name of relevant Actual Actual guarante performa guarante
Guarante Guarante Collatera Guarante
guarante announc occurren guarante e nce e for
e line e type l (if any) e period
e object ements ce date e date situation complete related
on (if any) d or not parties
guarante
e line
Total amount of company guarantee (i.e. the total of the first three major items)
Total actual amount
Total approved
of guarantee
guarantee lines
300,000 incurred during the 26,763
during the reporting
reporting period
period (A1+B1+C1)
(A2+B2+C2)
Total actual
Total approved
guarantee balance at
guarantee lines at the
300,000 the end of the 36,113
end of the reporting
reporting period
period (A3+B3+C3)
(A4+B4+C4)
The proportion of actual total guarantee
amount (i.e. A4+B4+C4) to the company's 36.70%
net assets
Including:
23
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
3.ntrusted financial management
□Applicable Not Applicable
There was no entrusted wealth management in the reporting period of the Company.
4. Other major contracts
□Applicable Not Applicable
There were no other major contracts in the reporting period of the Company.
XIII. Notes to other major items
Applicable Not applicable
1. During this reporting period, Mr. Lu Lianxing resigned from board chairman and director of the 8th session of board of directors
of the Company, and resigned from convener of Strategic Committee and Nomination Committee of the 8th session of board of
directors of the Company. Before new board chairman and convener of Strategic Committee are elected, Mr. Wang Huan, the
director and general manager of the Company, was elected by majority of directors of the Company to perform the duties of board
chairman and convener of Strategic Committee temporarily. Refer to Announcement on the Resignation of the Chairman (No.
2023-13) disclosed by the Company on China Securities Journal and CNINFO (www.cninfo.com.cn) on 6 May 2023 for details.
Currently, the Company has not elected new directors and board chairman; in accordance with relevant provisions of Articles of
Association of the Company, Mr. Wang Huan, the director and general manager of the Company, temporarily performs the duties
of legal representative.
2. The general meeting of the Company for the year of 2022 adopted Resolution on Changing the Domicile of the Company and
Revising Articles of Association, changing the domicile from “No. 29, Miaoling Road, Qingdao City, Shandong Province” to
“No. 31, Xianxialing Road, Qingdao City, Shandong Province”. Refer to Announcement on the Resolution of General Meeting of
2022 (No. 2023-14) disclosed by the Company on China Securities Journal and CNINFO (www.cninfo.com.cn) on 26 May 2023
for details. The issues of changing corporate domicile have not been registered at Qingdao Administrative Examination and
Approval Service Bureau, and the registered address after this change is subject to the content approved by administrative
examination and approval authority.
XIV. Significant events of the Company's subsidiaries
□Applicable Not applicable
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Section VII Changes in Shares and Information on Shareholders
I. Changes in shares
1. Changes in shares
Unit: share
Before this change Increase or decrease in this change (+, -) After this change
Issuance Provident
Proportio Bonus Proportio
Quantity of new fund Other Subtotal Quantity
n shares n
shares transfer
I. Unlisted
128,071,3 128,071,3
tradable 48.13% 48.13%
20 20
shares
1.
128,071,3 128,071,3
Promoter 48.13% 48.13%
20 20
shares
Of
which: 127,811,3 127,811,3
48.04% 48.04%
shares held 20 20
by the state
Shares
held by
domestic 260,000 0.09% 260,000 0.09%
legal
persons
Shares
held by
foreign
legal
persons
Other
2.
Raising
legal person
shares
3.
Internal
staff shares
4.
Preferred
stock or
other
II. Listed
138,000,0 138,000,0
tradable 51.87% 51.87%
00 00
shares
1. RMB
ordinary
shares
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
2.
Foreign 138,000,0 138,000,0
51.87% 51.87%
shares listed 00 00
in China
3.
Foreign
shares listed
overseas
4. Others
III. Total
266,071,3 266,071,3
number of 100.00% 100.00%
20 20
shares
Reason for Share Change
□Applicable Not Applicable
Approval status of shareholding changes
□Applicable Not Applicable
Transfer status of share changes
□Applicable Not Applicable
Implementation progress of share repurchase
□Applicable Not Applicable
Implementation progress of reducing share repurchase through centralized bidding
□Applicable Not Applicable
The impact of shareholding changes on financial indicators such as basic earnings per share, diluted earnings per share, and net
assets per share attributable to ordinary shareholders of the Company in the last year and the latest period
□Applicable Not Applicable
Other content that the Company deems necessary or required by securities regulators to disclose
□Applicable Not Applicable
2. Changes in restricted shares
□Applicable Not Applicable
II. Securities Issuance and Listing
□Applicable Not Applicable
III. Number of shareholders and shareholding status of the Company
Unit: share
Total number of preferred
Total number of ordinary shareholders with voting rights
shareholders at the end of the 9,892 restored at the end of the 0
reporting period reporting period (if any) (see
note 8)
Shareholdings of ordinary shareholders holding more than 5% of the shares or the top 10 ordinary shareholders
Shareholder Nature of Shareholding Number of Increase/decr Number of Number of Pledge, Mark or Frozen Situation
26
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
name shareholders ratio common ease changes unlisted and listed and
shares held at during the non- circulating
the end of the reporting circulating ordinary Share Status Quantity
reporting period ordinary shares held
period shares held
Shandong
State-owned
Assets State-owned 125,731,32 125,731,32
47.25%
Investment legal person 0 0
Holding Co.,
Ltd.
Chen foreign
2.16% 5,760,427 5,760,427
Tianming natural person
Domestic
Zhu Shuzhen 1.88% 5,002,046 5,002,046
natural person
Domestic
Cai Yujiu 1.75% 4,668,300 4,668,300
natural person
GUOTAI
JUNAN
Foreign legal
SECURITIE 1.10% 2,936,425 -16000 2,936,425
person
S（HONG
KONG）
LIMITED
Zhan Domestic
1.01% 2,693,815 2,693,815
Changcheng natural person
China
National
State-owned
Heavy Duty 0.73% 1,950,000 1,950,000
legal person
Truck Group
Co., Ltd.
Shenwan
Hongyuan
Foreign legal
Securities 0.71% 1,897,854 1,897,854
person
(Hong Kong)
Co., Ltd.
Domestic
Lin Mingyu 0.56% 1,500,001 1,500,001
natural person
Wang Foreign
0.42% 1,108,304 -28000 1,108,304
Dongsheng natural person
Situation of strategic investors
or general legal persons
becoming the top 10 ordinary
shareholders due to the not applicable
placement of new shares (if
any) (see Note 3)
Explanation on the related
The Company does not know whether it has an associated relationship or is a person acting in concert as stipulated in the
relationship or concerted action
"Administrative Measures for Information Disclosure of Shareholding Changes in Listed Companies".
of aforesaid shareholders
Explanation of the above-
mentioned shareholders
none
involved in entrusted/entrusted
voting rights and waiver of
27
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voting rights
Special instructions for
repurchase accounts among the
not applicable
top 10 shareholders (if any)
(see Note 11)
Shareholding status of the top 10 circulating common stock shareholders
Number of listed and circulating common shares held at the end of the reporting Type of shares
Shareholder name period Type of
Quantity
shares
Domestic
Chen Tianming 5,760,427 listed foreign 5,760,427
shares
Domestic
Zhu Shuzhen 5,002,046 listed foreign 5,002,046
shares
Domestic
Cai Yujiu 4,668,300 listed foreign 4,668,300
shares
GUOTAI JUNAN Domestic
SECURITIES（HONG 2,936,425 listed foreign 2,936,425
KONG） LIMITED shares
Domestic
Zhan Changcheng 2,693,815 listed foreign 2,693,815
shares
Shenwan Hongyuan Securities Domestic
(Hong Kong) Limited 1,897,854 listed foreign 1,897,854
company shares
Domestic
Lin Mingyu 1,500,001 listed foreign 1,500,001
shares
Domestic
Wang Dongsheng 1,108,304 listed foreign 1,108,304
shares
Domestic
Chen Cirou 1,093,860 listed foreign 1,093,860
shares
Domestic
Huang Jiayi 1,048,687 listed foreign 1,048,687
shares
Note for the association or
concerted action between the
top 10 shareholders of ordinary
shares with unrestricted sales
conditions, as well as between
The Company is not aware of whether the aforesaid shareholders have any associated relationship or are persons acting in
the top 10 shareholders of concert as stipulated in the "Administrative Measures for the Disclosure of Information on Changes in Shareholding of
ordinary shares with Shareholders of Listed Companies".
unrestricted sales conditions
and the top 10 shareholders of
ordinary shares
Note for the top 10 ordinary
not applicable
shareholders participating in
28
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margin trading (if any) (see
Note 4)
Whether the Company’s top 10 shareholders of common shares and top 10 shareholders of common shares not subject to sales
restrictions conducted agreed repurchase transactions during the reporting period
□ Yes No
The Company's top 10 shareholders of common shares and top 10 shareholders of common shares not subject to sales restrictions
did not conduct agreed repurchase transactions during the reporting period.
IV. Changes in Shareholding of Directors, Supervisors, and Senior Management
Applicable Not applicable
There has been no change in shareholding situation of the company's directors, supervisors, and senior management personnel
during the reporting period, as detailed in the 2022 annual report.
V. Changes in controlling shareholders or actual controllers
Changes in controlling shareholders during the reporting period
Applicable Not applicable
There has been no change in the controlling shareholder of the company during the reporting period.
Changes in actual controller during the reporting period
Applicable Not applicable
There has been no change in the actual controller of the company during the reporting period.
29
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section VIII Preferred Shares
□Applicable Not Applicable
During the reporting period, the Company had no preferred shares.
30
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Section IX Bonds
□Applicable Not Applicable
31
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Section X Financial Report
I. Audit Report
Has the semi-annual report been audited
Yes No
The company's semi-annual financial report has not been audited.
II. Financial Statements
The monetary unit of the financial statements in the financial notes is: RMB
1.Consolidated balance sheet
Prepared by: Shandong Zhonglu Oceanic Fisheries Co., Ltd.
June 30, 2023
Unit:RMB
Item June 30, 2023 January 1, 2023
Current assets:
Monetary funds 176,582,233.71 227,264,342.31
Settlement provisions
Lending funds
Trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 49,649,021.78 57,833,671.83
Accounts receivable financing
Prepayments 33,773,906.37 26,860,050.66
Premium receivable
Accounts receivable reinsurance
Reinsurance contract reserve receivable
Other receivables 6,370,630.00 5,562,546.59
Including: Interest receivable
Dividends receivable
Buying back the sale of financial assets
Inventory 514,432,161.66 426,125,273.33
Contract assets
Assets held for sale
Non-current assets maturing within one
year
Other current assets 8,698,262.22 10,791,446.11
Total current assets 789,506,215.74 754,437,330.83
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Non-current assets:
Issuance of loans and advances
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 1,730,148.44 1,983,923.48
Other equity instrument investments
Other non-current financial assets
Investment real estate 28,119,817.73 28,782,856.07
Fixed assets 1,046,244,239.75 630,970,963.32
Construction in progress 51,354,770.09 344,727,296.32
Productive biological assets
Oil and gas assets
Right of use assets 351,952.31 410,045.97
Intangible assets 61,786,870.88 62,627,704.04
Development expenditure
Goodwill
Long-term deferred expenses 69,204.04 79,090.36
Deferred tax assets 1,514,277.65 1,557,933.07
Other non-current assets 8,099,449.18 12,851,990.71
Total non-current assets 1,199,270,730.07 1,083,991,803.34
Total assets 1,988,776,945.81 1,838,429,134.17
Current liabilities:
Short-term loans 87,441,269.40 20,024,144.40
Borrowing from the Central Bank
Borrowing funds
Trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 126,152,497.34 134,272,304.05
Advance payment 1,879,098.03 1,684,961.19
Contract liabilities 56,718,860.93 49,576,606.91
Financial assets sold for repurchase
Deposit taking and interbank deposits
Acting trading securities
Acting underwriting securities
Employee compensation payable 48,050,168.40 55,116,034.18
Taxes and fees payable 2,482,139.64 4,341,676.32
Other payables 17,524,810.27 18,326,716.51
Including: Interest payable
Dividends payable
Handling fees and commissions payable
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Accounts payable reinsurance
Held for sale liabilities
Non-current liabilities maturing within
3,300,000.00 6,502,041.67
one year
Other current liabilities 5,813.08 223,557.01
Total current liabilities 343,554,657.09 290,068,042.24
Non-current liabilities:
Insurance contract reserves
Long-term loans 386,430,361.46 283,557,577.77
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities 186,871.11
Long-term accounts payable
Long-term employee compensation
551,802.08 616,935.20
payable
Estimated liabilities
Deferred income 12,873,647.49 13,500,315.67
Deferred tax liability 2,526,954.30 2,610,499.36
Other non-current liabilities
Total non-current liabilities 402,569,636.44 300,285,328.00
Total liabilities 746,124,293.53 590,353,370.24
Owner's equity:
Capital stock 266,071,320.00 266,071,320.00
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital reserve 295,620,272.02 295,620,272.02
Less: Treasury stock
Other comprehensive income 498,039.84 -6,291,344.58
Special reserves 303,295.34
Surplus reserves 21,908,064.19 21,908,064.19
General risk provision
Undistributed profits 399,563,090.30 409,764,423.32
Total owner's equity attributable to the
983,964,081.69 987,072,734.95
parent company
Minority shareholders' equity 258,688,570.59 261,003,028.98
Total owner's equity 1,242,652,652.28 1,248,075,763.93
Total liabilities and owner's equity 1,988,776,945.81 1,838,429,134.17
Legal representative: Wang Huan, Person in charge of accounting work: Fu Chuanhai, Person in charge of accounting agency: Lei
Lixin
2. Balance sheet of the parent company
Unit:RMB
Item June 30, 2023 January 1, 2023
Current assets:
34
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Monetary funds 16,404,474.88 50,352,735.39
Trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 6,392,835.65 416,945.02
Accounts receivable financing
Prepayments 14,436,270.77 11,978,519.28
Other receivables 165,324,368.33 124,833,179.13
Including: Interest receivable 614,333.33
Dividends receivable 79,137,061.83 79,137,061.83
Inventory 108,934,818.12 73,584,901.53
Contract assets
Assets held for sale
Non-current assets maturing within one
year
Other current assets 1,244,593.24 1,036,415.04
Total current assets 312,737,360.99 262,202,695.39
Non-current assets:
Debt investment
Other debt investments
Long-term receivables 4,289,611.23 3,852,541.51
Long-term equity investment 328,189,455.23 328,189,455.23
Other equity instrument investments
Other non-current financial assets
Investment real estate 28,119,817.73 28,782,856.07
Fixed assets 492,932,368.07 112,981,919.66
Construction in progress 16,560,747.31 330,769,336.43
Productive biological assets
Oil and gas assets
Right of use assets
Intangible assets 147,854.76 242,789.22
Development expenditure
Goodwill
Long-term deferred expenses
Deferred tax assets
Other non-current assets 3,677,308.80
Total non-current asset 870,239,854.33 808,496,206.92
Total assets 1,182,977,215.32 1,070,698,902.31
Current liabilities:
Short-term loans 49,400,000.00
Trading financial liabilities
Derivative financial liabilities
35
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Notes payable
Accounts payable 26,962,250.04 44,867,412.91
Advance receipts 1,879,098.03 1,684,961.19
Contract liabilities 15,525,210.72 19,914,211.04
Employee compensation payable 14,033,911.90 16,132,001.87
Taxes and fees payable 324,075.22 847,721.94
Other payables 168,323,092.75 161,941,857.71
Including: Interest payable
Dividends payable
Held for sale liabilities
Non-current liabilities maturing within
3,300,000.00 6,502,041.67
one year
Other current liabilities
Total current liabilities 279,747,638.66 251,890,208.33
Non-current liabilities:
Long-term loans 386,430,361.46 283,557,577.77
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities
Long-term accounts payable
Long-term employee compensation
463,135.85 528,268.97
payable
Estimated liabilities
Deferred income
Deferred tax liability
Other non-current liabilities
Total non-current liabilities 386,893,497.31 284,085,846.74
Total liabilities 666,641,135.97 535,976,055.07
Owner's equity:
Capital stock 266,071,320.00 266,071,320.00
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital reserve 279,115,900.17 279,115,900.17
Less: Treasury stock
Other comprehensive income
Special reserve
Surplus reserves 19,184,672.34 19,184,672.34
Undistributed profits -48,035,813.16 -29,649,045.27
Total owner's equity 516,336,079.35 534,722,847.24
Total liabilities and owner's equity 1,182,977,215.32 1,070,698,902.31
36
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
3.Consolidated income statement
Unit:RMB
Item Half year of 2023 Half year of 2022
454,219,264.20 370,548,994.76
I. Total operating income
Including: Operating income 454,219,264.20 370,548,994.76
Interest income
Earned premium
Handling fee and commission
income
II. Total operating costs 466,379,504.41 392,178,058.04
Including: Operating costs 436,204,233.19 365,817,738.76
Interest expenses
Handling fees and commission
expenses
Surrender deposit
Net compensation expenses
Net amount of insurance
liability reserve withdrawn
Expenditures dividend policy
Reinsurance expenses
Taxes and surcharges 1,408,885.26 1,574,981.39
Sales expenses 1,891,807.78 1,445,349.37
Administrative expenses 29,182,163.89 25,639,725.37
R&D expenses 615,475.75 332,543.96
Financial expenses -2,923,061.46 -2,632,280.81
Including: Interest expenses 4,110,188.21 1,350,577.27
Interest income 908,757.25 202,305.23
Plus: Other income 1,528,046.31 688,100.25
Investment income (loss , using
-253,775.04 1,076,034.24
"-")
Including: Investment income
-253,775.04
from associates and joint ventures
Income from derecognition of
financial assets measured at amortized
cost
Exchange gains (losses, using "-
")
Net exposure hedging income
(loss, using "-")
Income from changes in fair
-96,000.00
value (loss , using "-")
Credit impairment loss (loss ,
-289,385.20 360,747.35
using "-")
Asset impairment loss (loss , -2,699,370.85
37
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
using "-")
Asset disposal income (loss ,
5,105,581.41
using "-")
III. Operating profit (loss , using
-13,874,724.99 -14,494,600.03
"-")
Plus: Non-operating income 529,150.50 37,000.10
Less: Non-operating expenses 2,714.51 1,337.00
IV. Total profit (total loss, using "-") -13,348,289.00 -14,458,936.93
Less: Income tax expenses 1,099,110.53 358,112.38
V. Net profit (net loss, using "-") -14,447,399.53 -14,817,049.31
(I)Classified by business continuity
1. Net profit from continuing operations
-14,447,399.53 -14,817,049.31
(net loss , using "-")
2. Net profit from discontinuing
operations (net loss , using "-")
(II) Classification by ownership
1.Net profit attributable to shareholders
of the parent company (net loss, using "- -10,201,333.02 -9,019,125.78
")
2.Minority shareholder gains and losses
-4,246,066.51 -5,797,923.53
(net loss, using "-")
VI. After-tax net amount of other
8,720,992.54 9,914,560.92
comprehensive income
After-tax net amount of other
comprehensive income attributable to the 6,789,384.42 7,634,270.71
owner of the parent company
Other comprehensive income that
cannot be reclassified into profit or loss
1.Changes in remeasurement of defined
benefit plans
2.Other comprehensive income that
cannot be transferred to gain or loss
under the equity method
3. Changes in fair value of other equity
instrument investments
4. Changes in fair value of enterprise's
own credit risk
5.Others
Other comprehensive income to be
6,789,384.42 7,634,270.71
reclassified into profit or loss
6.Other comprehensive income that can
be transferred to profit or loss under the
equity method
7.Changes in fair value of other credit
investments
8.Reclassification of financial assets into
other comprehensive income
9.Credit impairment provision of other
debt investments
10. Cash flow hedging reserves
38
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11. Translation differences in foreign
6,789,384.42 7,634,270.71
currency financial statements
12. Others
13. After-tax net amount of other
comprehensive income attributable to 1,931,608.12 2,280,290.21
minority shareholders
VII. Total comprehensive income -5,726,406.99 -4,902,488.39
Total comprehensive income attributable
-3,411,948.60 -1,384,855.07
to the owners of the parent company
Total comprehensive income attributable
-2,314,458.39 -3,517,633.32
to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share -0.0383 -0.0339
(II) Diluted earnings per share -0.0383 -0.0339
If a business merger occurs under the same control in the current period, the net profit realized by the merged party before the
merger is: RMB, while the net profit realized by the merged party in the previous period is:RMB.
Legal representative: Wang Huan, Person in charge of accounting work: Fu Chuanhai, Person in charge of accounting agency: Lei
Lixin
4. Profit statement of the parent company
Unit:RMB
Item Half year of 2023 Half year of 2022
1. Operating income 67,009,605.79 43,901,252.32
Less: Operating costs 68,186,430.48 43,006,535.77
Taxes and surcharges 650,364.27 630,255.58
Sales expenses 377,736.62 89,075.70
Administrative expenses 14,849,393.19 14,332,990.11
R&D expenses 26,409.47
Financial expenses 1,370,887.76 -2,310,031.96
Including: Interest expenses 4,595,212.38 1,182,579.77
Interest income 729,369.72 104,634.80
Plus: Other income 18,491.94 17,154.36
Investment income (loss , using
1,076,034.24
"-")
Including: Investment income
from associates and joint ventures
Income from derecognition of financial
assets measured at amortized cost (loss ,
using "-")
Net exposure hedging income
(loss , using "-")
Income from changes in fair value
(loss , using "-")
Credit impairment loss (loss ,
22,331.21 542,539.78
using "-")
Asset impairment loss (loss ,
39
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
using "-")
Asset disposal income (loss ,
using "-")
II. Operating profit (loss , using "-") -18,384,383.38 -10,238,253.97
Plus: Non-operating income 330.00 22,759.94
Less: Non-operating expenses 2,714.51 1,337.00
III. Total profit (total loss , using "-") -18,386,767.89 -10,216,831.03
Less: Income tax expenses
IV. Net profit (net loss , using "-") -18,386,767.89 -10,216,831.03
(I) Net profit from continuing operations
-18,386,767.89 -10,216,831.03
(net loss , using "-")
(2) Net profit from discontinuing
operations (net loss, using "-")
V.After-tax net amount of other
comprehensive income
(I) Other comprehensive income that
cannot be reclassified into profit or loss
1.Remeasured changes in defined benefit
plans
2.Other comprehensive income that
cannot be transferred to gain or loss
under the equity method
3.Changes in fair value of other equity
instrument investments
4.Changes in fair value of enterprise's
own credit risk
5. Others
(II) Other comprehensive income to be
reclassified into profit or loss
1. Other comprehensive income that can
be transferred to profit or loss under the
equity method
2.Changes in fair value of other credit
investments
3.Financial assets reclassified into other
comprehensive income
4.Provision for credit impairment of
other debt investments
5.Cash flow hedging reserves
6. Translated differences in foreign
currency financial statements
7. Others
VI. Total comprehensive income -18,386,767.89 -10,216,831.03
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5.Consolidated cash flow statement
Unit:RMB
Item Half year of 2023 Half year of 2022
I. Cash flow generated from operating
activities:
Cash received from selling goods and 466,860,334.47 359,507,267.53
40
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
providing services
Net increase in customer deposits and
interbank deposits and loans
Net increase in borrowings from the
Central Bank
Net increase in borrowing funds from
other financial institutions
Cash received from original insurance
contract premiums
Net cash received from reinsurance
business
Net increase in insured deposits and
investments
Cash received for interest, handling
fees, and commissions
Net increase in borrowing funds
Net increase in repurchase business
funds
Net cash received from proxy trading
of securities
Received refunds of taxes 14,575,860.89 18,349,028.22
Received other cash related to
3,850,915.87 11,729,762.30
operating activities
Subtotal of cash inflows from
485,287,111.23 389,586,058.05
operating activities
Cash paid for purchasing goods and
438,723,024.15 352,360,139.26
receiving services
Net increase in customer loans and
advances
Net increase in deposits with Central
Bank and interbank funds
Cash paid for compensation under the
original insurance contract
Net increase in lending funds
Cash paid for interest, handling fees,
and commissions
Cash paid for policy dividends
Cash paid to and on behalf of
75,715,483.99 79,035,276.88
employees
Various taxes and fees paid 7,762,355.65 8,668,847.08
Other cash payments related to
17,552,207.05 18,239,881.04
operating activities
Subtotal of cash outflows from
539,753,070.84 458,304,144.26
operating activities
Net cash flow generated from
-54,465,959.61 -68,718,086.21
operating activities
II. Cash flow generated from investment
activities
Cash received from investment recovery 260,000,000.00
Cash received from obtaining investment
1,076,034.24
income
Net cash received from disposal of fixed
7,554,887.43
assets, intangible assets, and other long-
41
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
term assets
Net cash received from disposal of
subsidiaries and other business units
Received other cash related to
investment activities
Subtotal of cash inflows from investment
268,630,921.67
activities
Cash paid for the purchase and
construction of fixed assets, intangible 157,543,076.25 15,815,569.94
assets, and other long-term assets
Cash paid for investment 262,382,345.00
Net increase in pledged loans
Net cash paid for acquiring subsidiaries
and other business units
Other cash payments related to
investment activities
Subtotal of cash outflows from
157,543,076.25 278,197,914.94
investment activities
Net cash flow generated from investment
-157,543,076.25 -9,566,993.27
activities
III. Cash flow generated from financing
activities:
Cash received from absorbing
100,000,000.00
investments
Including: Cash received from
subsidiaries absorbing minority 100,000,000.00
shareholder investments
Cash received from obtaining loans 170,430,361.46
Received other cash related to
financing activities
Subtotal of cash inflows from
170,430,361.46 100,000,000.00
financing activities
Cash paid for debt repayment 3,200,000.00 16,100,000.00
Cash paid for distributing dividends,
7,184,959.72 3,490,984.61
profits, or paying interest
Including: Dividends and profits paid
by subsidiaries to minority shareholders
Other cash payments related to
338,909.00 652,967.28
financing activities
Subtotal of cash outflows from
10,723,868.72 20,243,951.89
financing activities
Net cash flow generated from
159,706,492.74 79,756,048.11
financing activities
IV. The impact of exchange rate
1,620,434.52 1,815,856.49
changes on cash and cash equivalents
V. Net increase in cash and cash
-50,682,108.60 3,286,825.12
equivalents
Plus: Opening balance of cash and cash
227,264,342.31 209,649,305.99
equivalents
VI. Closing balance of cash and cash
176,582,233.71 212,936,131.11
equivalents
42
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
6. Cash flow statement of the parent company
Unit:RMB
Item Half year of 2023 Half year of 2022
I. Cash flow generated from operating
activities:
Cash received from selling goods and
51,088,820.85 20,028,339.91
providing services
Received refunds of taxes 31,858.29
Received other cash related to operating
723,823.62 8,001,569.03
activities
Subtotal of cash inflows from operating
51,812,644.47 28,061,767.23
activities
Cash paid for purchasing goods and
60,267,617.75 29,919,326.23
receiving services
Cash paid to and on behalf of employees 18,574,437.40 19,240,930.75
Various taxes and fees paid 926,400.93 722,945.09
Other cash payments related to operating
7,461,551.42 4,432,049.90
activities
Subtotal of cash outflows from operating
87,230,007.50 54,315,251.97
activities
Net cash flow generated from operating
-35,417,363.03 -26,253,484.74
activities
II. Cash flow generated from investment
activities:
Cash received from investment recovery 260,000,000.00
Cash received from obtaining investment
15,524,276.11
income
Net cash received from disposal of fixed
assets, intangible assets, and other long-
term assets
Net cash received from disposal of
subsidiaries and other business units
Received other cash related to
2,051,160.00
investment activities
Subtotal of cash inflows from investment
277,575,436.11
activities
Cash paid for the purchase and
construction of fixed assets, intangible 91,336,954.25 3,838,108.94
assets, and other long-term assets
Cash paid for investment 260,000,000.00
Net cash paid for acquiring subsidiaries
and other business units
Other cash payments related to
investment activities
Subtotal of cash outflows from
91,336,954.25 263,838,108.94
investment activities
Net cash flow generated from investment
-91,336,954.25 13,737,327.17
activities
III. Cash flow generated from financing
activities:
Cash received from absorbing
investments
Cash received from obtaining loans 152,430,361.46
Received other cash related to financing
7,650,000.00 100,000,000.00
activities
43
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Subtotal of cash inflows from
160,080,361.46 100,000,000.00
financing activities
Cash paid for debt repayment 3,200,000.00 10,100,000.00
Cash paid for distributing dividends,
6,663,459.72 3,321,092.94
profits, or paying interest
Other cash payments related to
57,467,472.65 52,997,001.98
financing activities
Subtotal of cash outflows from
67,330,932.37 66,418,094.92
financing activities
Net cash flow generated from
92,749,429.09 33,581,905.08
financing activities
IV. The impact of exchange rate changes
56,627.68 73,669.23
on cash and cash equivalents
V. Net increase in cash and cash
-33,948,260.51 21,139,416.74
equivalents
Plus: Opening balance of cash and
50,352,735.39 49,943,353.89
cash equivalents
VI. Closing balance of cash and cash
16,404,474.88 71,082,770.63
equivalents
7.Consolidated statement of changes in owner's equity
Amount of current period
Unit:RMB
Half year of 2023
Total owner's equity attributable to the parent company
Other equity Oth Min
instruments er Tota
ority
Less Gen Und
Item com Spe Surp shar l
Capi Perp Capi : eral istri ehol
Pref preh cial lus own
tal etua tal Trea risk bute Oth Subt der's er's
erre ensi rese rese
stoc l Oth rese sury prov d ers otal equi
d ve rves rves equi
k bon rve stoc isio prof ty
ers inco ty
stoc ds k n it
k me
266, 295, - 21,9 409, 987, 261, 1,24
I. Closing
071, 620, 6,29 08,0 764, 072, 003, 8,07
balance of
320. 272. 1,34 64.1 423. 734. 028. 5,76
previous year
00 02 4.58 9 32 95 98 3.93
Plus:
Changes in
accounting
policies
Early error
correction
Merger of
enterprises
under the
same control
Others
44
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
266, 295, - 21,9 409, 987, 261, 1,24
II. Opening
071, 620, 6,29 08,0 764, 072, 003, 8,07
balance of
320. 272. 1,34 64.1 423. 734. 028. 5,76
this year
00 02 4.58 9 32 95 98 3.93
III. Increase
-
or decrease - - -
6,78 303, 10,2
in the current 3,10 2,31 5,42
9,38 295. 01,3
period 8,65 4,45 3,11
4.42 34 33.0
(decrease , 3.26 8.39 1.65
2
using "-")
-
- - -
(I) Total 6,78 10,2
3,41 2,31 5,72
comprehensi 9,38 01,3
1,94 4,45 6,40
ve income 4.42 33.0
8.60 8.39 6.99
2
(II) Capital
invested and
reduced by
owners
1.Ordinary
shares
invested by
owners
2．Capital
invested by
holders of
other equity
instruments
3．Amount
of share-
based
payments
recognized in
owner's
equity
4．Others
(III) Profit
distribution
1．Withdra
wal of
surplus
reserves
2. Withdraw
al of general
risk
provisions
3．Distributi
on to owners
(or
shareholders)
4．Others
(IV) Internal
carryover of
owner's
45
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
equity
1．Capitaliz
ation of
capital
reserves into
capital (or
capital stock)
2.Surplus
reserves
converted
into capital
(or capital
stock)
3．Surplus
reserves to
cover losses
4.Carryover
of changes in
defined
benefit plans
to retained
earnings
5．Other
comprehensi
ve income
carried
forward to
retained
earnings
6．Others
303, 303, 303,
(V)Special
295. 295. 295.
reserves
34 34 34
1.Withdrawal 1,65 1,65 1,65
in current 8,74 8,74 8,74
period 8.71 8.71 8.71
1,35 1,35 1,35
2．Current
5,45 5,45 5,45
usage
3.37 3.37 3.37
(VI)Others
IV. Closing 266, 295, 21,9 399, 983, 258, 1,24
498, 303,
balance of 071, 620, 08,0 563, 964, 688, 2,65
039. 295.
the current 320. 272. 64.1 090. 081. 570. 2,65
84 34
period 00 02 9 30 69 59 2.28
46
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Amount of previous year
Unit:RMB
Half year of 2022
Total owner's equity attributable to the parent company
Other equity Oth Min
instruments Less er Gen Und ority Tota
Item Capi Capi : com Spe Surp eral istri shar l
Pref Perp ehol own
tal tal Trea preh cial lus risk bute Oth Subt
erre etua der's er's
stoc Oth rese sury ensi rese rese prov d ers otal
d l equi equi
k ers rve stoc ve rves rves isio prof
stoc bon inco n it ty ty
k
k ds me
-
266, 284, 21,9 379, 933, 161, 1,09
I. Closing 18,2 232,
071, 054, 08,0 524, 535, 988, 5,52
balance of 56,2 783.
320. 997. 64.1 911. 874. 106. 3,98
previous year 01.9 00
00 75 9 94 90 39 1.29
8
Plus:
Changes in
accounting
policies
Ear
ly error
correction
Merger of
enterprises
under the
same control
Others
-
266, 284, 21,9 379, 933, 161, 1,09
II.Opening 18,2 232,
071, 054, 08,0 524, 535, 988, 5,52
balance of 56,2 783.
320. 997. 64.1 911. 874. 106. 3,98
this year 01.9 00
00 75 9 94 90 39 1.29
8
III. Increase
or decrease 11,5 - 10,3 84,9 95,2
7,63 183,
in the current 65,2 9,01 63,7 17,0 80,8
4,27 325.
period 74.2 9,12 44.9 92.4 37.3
0.71 75
(decrease , 7 5.78 5 0 5
using "-")
- - 84,9 83,5
(I) Total 7,63
9,01 1,38 17,0 32,2
comprehensi 4,27
9,12 4,85 92.4 37.3
ve income 0.71
5.78 5.07 0 3
(II) Capital 11,5 11,5 11,5
invested and 65,2 65,2 65,2
reduced by 74.2 74.2 74.2
owners 7 7 7
1．Ordinary
shares
invested by
owners
2．Capital
47
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
invested by
holders of
other equity
instruments
3．Amount
of share-
based
payments
recognized in
owner's
equity
11,5 11,5 11,5
65,2 65,2 65,2
4．Others
74.2 74.2 74.2
7 7 7
(III) Profit
distribution
1．Withdra
wal of
surplus
reserves
2．Withdra
wal of
general risk
provisions
3．Distributi
on to owners
(or
shareholders)
4．Others
(IV)Internal
carryover of
owner's
equity
1．Capitaliz
ation of
capital
reserves into
capital (or
share capital)
2．Surplus
reserves
converted
into capital
(or capital
stock)
3．Surplus
reserves to
cover losses
4．Carryove
r of changes
in defined
benefit plans
to retained
48
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
earnings
5．Other
comprehensi
ve income
carried
forward to
retained
earnings
6．Others
183, 183, 183,
(V) Special
325. 325. 325.
reserve
75 75 75
1．Withdra
494, 494, 494,
wal in
302. 302. 302.
current
97 97 97
period
310, 310, 310,
2．Current
977. 977. 977.
usage
22 22 22
(VI) Others
-
IV. Closing 266, 295, 21,9 370, 943, 246, 1,19
10,6 416,
balance of 071, 620, 08,0 505, 899, 905, 0,80
21,9 108.
the current 320. 272. 64.1 786. 619. 198. 4,81
31.2 75
period 00 02 9 16 85 79 8.64
7
8. Statement of changes in owner's equity of the parent company
Amount of current period
Unit:RMB
Half year of 2023
Other equity instruments Other
Total
Capita Less: compr Specia Surplu Undist
Item Total
Capita Prefer Perpet l Treasu ehensi l s ribute
Others owner'
l stock red ual Others reserv ry ve reserv reserv d
s
stock bonds e stock incom es es profit
equity
e
-
I. Closing 266,0 279,1 19,18 534,7
29,64
balance of 71,32 15,90 4,672. 22,84
9,045.
previous year 0.00 0.17 34 7.24
27
Plus:
Changes in
accounting
policies
Early error
correction
Others
II. Opening 266,0 279,1 19,18 - 534,7
balance of 71,32 15,90 4,672. 29,64 22,84
this year 0.00 0.17 34 9,045. 7.24
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
27
III. Increase
or decrease - -
in the current 18,38 18,38
period 6,767. 6,767.
(decrease , 89 89
using "-")
- -
(I) Total
18,38 18,38
comprehensi
6,767. 6,767.
ve income
89 89
(II) Capital
invested and
reduced by
owners
1．Ordinary
shares
invested by
owners
2．Capital
invested by
holders of
other equity
instruments
3．Amount
of share-
based
payments
recognized in
owner's
equity
4．Others
(III)Profit
distribution
1．Withdraw
al of surplus
reserves
2．Distributi
on to owners
(or
shareholders)
3. Others
(IV) Internal
carryover of
owner's
equity
1．Capitaliz
ation of
capital
reserves into
capital (or
share capital)
2．Surplus
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
reserves
converted
into capital
(or capital
stock)
3．Surplus
reserves to
cover losses
4．Carryove
r of changes
in defined
benefit plans
to retained
earnings
5．Other
comprehensi
ve income
carried
forward to
retained
earnings
6．Others
(V) Special
reserve
1．Withdraw
al in current
period
2．Current
usage
(VI)Others
IV. Closing -
266,0 279,1 19,18 516,3
balance of 48,03
71,32 15,90 4,672. 36,07
the current 5,813.
0.00 0.17 34 9.35
period 16
Amount of previous year
Unit:RMB
Half year of 2022
Other equity instruments Other
Total
Capita Less: compr Specia Surplu Undist
Item Total
Capita Prefer Perpet l Treasu ehensi l s ribute
Others owner'
l stock red ual Others reserv ry ve reserv reserv d
s
stock bonds e stock incom es es profit
equity
e
-
I. Closing 266,0 279,1 19,18 534,2
30,09
balance of 71,32 15,90 4,672. 74,33
7,556.
previous year 0.00 0.17 34 6.06
45
Plus:
Changes in
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
accounting
policies
Early error
correction
Others
-
II. Opening 266,0 279,1 19,18 534,2
30,09
balance of 71,32 15,90 4,672. 74,33
7,556.
this year 0.00 0.17 34 6.06
45
III. Increase
or decrease - -
in the current 10,21 10,21
period 6,831. 6,831.
(decrease , 03 03
using "-")
- -
(I) Total
10,21 10,21
comprehensi
6,831. 6,831.
ve income
03 03
(II) Capital
invested and
reduced by
owners
1.Ordinary
shares
invested by
owners
2．Capital
invested by
holders of
other equity
instruments
3．Amount
of share-
based
payments
recognized in
owner's
equity
4．Others
(III) Profit
distribution
1．Withdraw
al of surplus
reserves
2．Distributi
on to owners
(or
shareholders)
3.Others
(IV)Internal
carryover of
owner's
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
equity
1．Capitaliz
ation of
capital
reserves into
capital (or
share capital)
2．
Surplus
reserves
converted
into capital
(or capital
stock)
3.Surplus
reserves to
cover losses
4.Carryover
of changes in
defined
benefit plans
to retained
earnings
5．Other
comprehensi
ve income
carried
forward to
retained
earnings
6．Others
(V)Special
reserves
1．Withdraw
al in current
period
2．Current
usage
(VI)Others
IV.Closing -
266,0 279,1 19,18 524,0
balance of 40,31
71,32 15,90 4,672. 57,50
the current 4,387.
0.00 0.17 34 5.03
period 48
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
III. Company profile
1.The registered address of Shandong Zhonglu Oceanic Fishery Co., Ltd. (hereinafter referred to as “the Company”) is 29
Miaoqiao Road, Laoshan District, Qingdao, Shandong. It is a company limited by shares established on July 30, 1999, by means of
promotion with Shandong Aquaculture Enterprise Group as the key promoter, with the approval of the Shandong Economic
Restructuring Commission through Document LTGZ [1999] No. 85. With the approval of the China Securities Regulatory
Commission through Document ZJFXZ [2000] No. 82 on June 26, 2000, the Company’s B-shares were listed on the Shenzhen
Stock Exchange on July 24, 2000. The short stock name is “Zhonglu B,” and the stock code is “200992.”
The Company’s basic organizational structure consists of: Annual General Meeting, Board of Directors, Board of Supervisors,
General Manager’s Office (Party Committee’s Office), Board Office, Human Resources Department (Organizational Department),
Financial Management Department (Capital Operations Department), Corporate Development Department, Audit Department,
Oceanic Management Departments, Discipline Inspection Committee’s Office, Party’s Mass Work Department, and Risk Control
Department (Legal Affairs Department).
2. Business Nature and Key Operating Activities
The Company is engaged in the oceanic fishery industry.
The Company’s key products include tuna and its products.
The Company’s business scope is: general business items: processing and sale of aquatic products; commodity import and export
within the approved scope; manufacture and sale of machine-made ice; manufacture, installation, and repair of refrigeration
equipment; refrigeration and cold storage; loading, unloading, and handling services; property leasing.
Business items with prerequisite licensing: open-water fishing and long-range fishing.
3. Name of the parent company and the ultimate parent company of the Group is Shandong State-owned Assets Investment
Holdings Co., Ltd
4. Approver and Approval Date of Financial Reports for Release.
The financial statements have been approved by the Company’s Board through the resolution made on April 26, 2023.
IV. Basis of preparation of financial statements
1.Basis of preparation
On the basis of going concern and transactions and events actually occurred, accounting is based on Accrual Basis.
The company generally adopts historical cost to measure accounting elements. On the premise that the amount of
accounting elements determined can be obtained and measured reliably, the company adopts Replacement cost, Net
realizable value, Present value and Fair value to measure accounting elements.
2.Going concern
Within at least 12 months of this report, the company should maintain its operational capacity without matters that
have potential impact on ability of the continuing operations.
V. Significant accounting policies and accounting estimates
1. Declaration on compliance with the Accounting Standards for Business Enterprises
The financial statements and notes are in accordance with the Accounting Standards for Business Enterprises
promulgated by the Ministry of Finance, the application guidelines, Interpretation of the Accounting Standards for
Business Enterprises, “No. 15 rules for the preparation and reporting of information disclosure by companies that
issue securities to the public – general provisions on financial reports [2014 Amendment]" issued by the China
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Securities Regulatory Commission and relevant supplementary provisions, which truly and completely reflect the
company’s financial status, operating results, changes in shareholders’ equity and cash flow and other relevant
information.
2. Accounting period
The financial year of the Company is from January 1 to December 31 of each calendar year.
3.Operating cycle
The Company’s operating cycle is 12 months in each calendar year and it classifies the assets and liabilities' liquidity by
operating cycle.
4.Functional currency
The Company's functional currency is Chinese Renminbi.
5. Business combination
5.1 Business combinations involving enterprises under common control
In a business combination involving enterprises under common control, if the acquirer pays for the business
combination in cash, by transferring of non-cash assets or assuming liabilities, the initial investment cost is the holding
share of the acquiree's equity in the ultimate controlling party's consolidated financial statements measured at the
carrying amounts at the acquisition date. If the acquirer issues equity instruments for the business combination, the
acquirer measures the share capital by the par value of the shares issued. The difference between the original
investment cost and the carrying amount (or the total par value of shares issued) will be adjusted to the capital reserve.
If the capital reserve is insufficient to absorb the difference, the remaining amount shall be deducted from the retained
earnings. The intermediary fees of auditing, legal services, evaluation and consultation and other related management
expenses incurred for business combination shall be recorded into current profits and losses when incurred. The
bonds issued for the combination of enterprise or the handling fees and commissions paid for assumption other debts
shall be included in initial measurement amount of the bonds and other debts issued. The handling fees, commissions
and other expenses incurred from the issuance of equity securities in the course of business combination shall be
offset against the premium income of equity securities, and retained earning shall be offset if the premium income is
not sufficient to be offset.
5.2 Business combinations involving enterprises not under uncommon control
(a) In a business combination involving enterprises not under common control, the combination costs are determined
according to the following conditions: a. the aggregate of the fair values of the assets paid, the liabilities incurred or
assumed and the equity instruments issued by the acquirer in exchange for control over the acquiree at the acquisition
date; b. for the Business combinations which is realized step by step through multiple exchange transactions, the initial
investment cost of long-term equity investment is the sum of each single transaction cost; c. The intermediary fees of
auditing, legal services, evaluation and consultation and other related management expenses incurred for business
combination shall be recorded into the current profit and loss when incurred. Transaction cost of equity securities or
debt securities issued as consideration for the combination is included in the initial recognition amount of the equity
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
securities or debt securities; d. If the future events that may affect the merger cost are stipulated in the combination
contract or agreement, and if it is estimated that the future events are likely to occur and the amount of influence on
the merger cost can be measured reliably on the purchase date, it will be included in the initial investment cost of the
long-term equity investment.
(b) At the acquisition date, the acquired assets, liabilities and contingent liabilities of the acquiree that meet the
recognition criteria are measured at their fair value.
If investment cost of long-term equity investment is more than the difference in the share of fair value of identifiable
net assets acquired by the purchaser in the merger, it shall be recognized as goodwill.
If investment cost of long-term equity investment is less than the difference in the share of fair value of identifiable
net assets acquired by the purchaser in the merger, it shall be handled in the following way: a. Review the measurement
of the fair value of all identifiable assets, liabilities and contingent liabilities of the acquired purchaser and the
combined cost; b. If the merger cost is still less than the fair value share of identifiable net assets acquired during the
merger after review, the difference shall be recorded into profit or loss for the current period entirely.
6.Preparation of consolidated financial statements
The consolidated scope of the consolidated financial statements is determined on a control basis. Control refers to the
investor has the power of the investee, through participation in the investee related activities and enjoy variable
returns, and have the ability to use the power of the investee influence its return amount.
The Company incorporates all its subsidiaries (including individual entities under its control) into the scope of the
consolidated financial statements, including the enterprises controlled by the Company, divisible part in the investees
and structured entities.
If the parent company is an investment entity, the parent company should only include its subsidiaries (if any) that
provide relevant services for its investment activities into the scope of consolidation and prepare consolidated
financial statements; other subsidiaries shall not be consolidated. The parent company's investment in other
subsidiaries shall be measured at fair value and its changes shall be recorded into profits and loss for the current
period entirely. When the parent company simultaneously satisfies the following conditions, the parent company
belongs to the investment subject: a. The parent company obtains funds from one or more investors for the purpose
of providing investment management services to investors; b. The sole purpose of the parent company's operations is
to generate returns for investors through capital gain, income from investment or both; c. The parent company
measures and evaluates the performance of almost all investments at fair value.
The unified accounting policy and period used by the company and the consolidated subsidiary when preparing of
consolidated statements. The consolidated financial statements are prepared based on the individual financial
statements of the Company and its subsidiaries, after elimination of the transactions incurred among the Company
and the subsidiaries. Where a subsidiary or business has been acquired through a business combination involving
enterprises under common control in the reporting period, the company should adjust the opening balance of the
consolidated balance sheet. Where a subsidiary or business has been acquired through a business combination
involving enterprises not under common control in the reporting period, the company should not adjust the opening
balance of the consolidated balance sheet. Where a subsidiary or business has been acquired through a business
combination involving enterprises under common control in the reporting period, the income, expense, profit and
cash flow of the subsidiary from the beginning of the consolidation period to the end of the reporting period are
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
included in the consolidated income statement and cash flow statement. Where a subsidiary or business has been
acquired through a business combination involving enterprises not under common control in the reporting period, the
income, expenses, profit and cash flow of the subsidiary from the purchase date to the end of the reporting period are
included in the consolidated income statement and cash flow statement. The company disposed of the subsidiary
during the reporting period, the income, expenses, profit and cash flow of the subsidiary from the beginning of the
year to the disposal date are included in the consolidated income statement and cash flow statement.
When the parent company purchases the equity of the subsidiary owned by the minority shareholders of the subsidiary,
in the consolidated financial statements, the difference between the newly acquired long-term equity investment due
to the purchase of minority equity and the proportion of the newly added shareholding shall be entitled to the
subsidiary’s continuous calculation from the date of purchase or the date of consolidation should be adjusted to the
capital reserve and if the capital reserve is insufficient to absorb the difference, the remaining amount shall be
deducted from the retained earnings.
In the consolidated financial statements, when the Company partly disposes its investment in a subsidiary without
losing its control on the subsidiary, the difference between the consideration received and its corresponding portion of
the net asset continually calculated from the purchase date or combination date should be adjusted to the capital
reserve and if the capital reserve is insufficient to absorb the difference, the remaining amount will be deducted from
the retained earnings.
In the consolidated financial statements, if the Company loses its control on an investee because of disposing some
portion of its equity investment in the investee, the remaining balance of its equity investment will be remeasured at
the fair value of the date at which it loses its control. The difference between the sum of the consideration received
and the fair value of the remaining equity investment, and its corresponding interest portion of the net asset
continually calculated from the purchase date or the combination date should be recorded in the investment income
of the current period, and be deducted to goodwill simultaneously. Other comprehensive income (OCI) etc. relating
to the investment in the former subsidiary will be transferred to the investment income in the same period in which it
loses its control, other comprehensive income arising from the change in net liabilities or net assets of the defined
benefit plan remeasured by the investee shall be excluded.
7. Joint arrangement classification and accounting treatments
7.1 The classification of joint arrangement
Joint arrangements are classified as joint operations or joint ventures.
Joint operation refers to a joint arrangement in which the joint venture party enjoys the relevant assets of the
arrangement and assumes the relevant liabilities of the arrangement.
The Company acted as a party participating in joint operations, confirm the following items relating to its interests in
the joint operations and accounts for them in accordance with related requirements of Accounting Standards for
Business Enterprises:
(a) Its solely-held assets and solely-assumed liabilities, and its share of any assets and liabilities held jointly;
(b) Its revenue from the sale of its share of the output arising from the joint operation;
(c) Its share of the revenue from the sale of the output by the joint operation;
(d) Its own expenses and its share of any expenses incurred jointly.
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
A joint venture refers to a joint arrangement in which the joint venture party only has rights to the net assets of the
arrangement. Investments in joint ventures are accounted for by the company in accordance with the equity method.
8.Cash and cash equivalents
The cash in the Company's statement of cash flows is cash on hand and deposits that can be readily drawn on demand.
Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of change in value.
9. Foreign currency transactions and translation of financial statements denominated in foreign currency
(1) In the initial confirmation of a foreign currency transaction, the foreign currency amount shall be converted into
THE RMB amount using an approximate exchange rate of the spot exchange rate at the date when the transactions
occurs.
(2) On the balance sheet date, foreign currency monetary items and foreign currency non-monetary items shall be
handled in accordance with the following methods:
(a) Foreign currency monetary items shall be translated at the central rate of THE EXCHANGE rate of RMB
published by the People's Bank of China on the balance sheet date. Foreign exchange difference between the
prevailing exchange rate on that date and the prevailing exchange rate on initial recognition or on the previous balance
sheet date are recognized in profit or loss for the current period.
(b) Non-monetary items denominated in foreign currency that are measured at historical cost are still translated at
amount in functional currency exchanged at the prevailing exchange rate at the transaction date. Non-monetary items
denominated in foreign currency that are measured at fair value are translated using the exchange rate at the date when
fair value was determined and the difference between the translated functional currency amount and the prior
translated amount on initial recognition or on the previous balance sheet date are recorded in profit or loss for the
current period or other comprehensive income.
Monetary items refer to the monetary funds held by the company and the assets or liabilities to be collected or paid at
a fixed or determinable amount. The term "non-monetary items" refers to items other than monetary items.
(3) The translation of financial statements denominated in foreign currency
(a) The assets and liabilities are translated to RMB amounts using the spot exchange rate at the balance sheet date.
Items of the equity, except for "retained earnings ", are translated at the spot exchange rate at the dates when such
items occurred.
(b) The revenue and expenditures in the statement of income are translated using an approximate exchange rate of the
spot exchange rate at the transaction date.
(c) The difference arising from foreign currency financial statements translation is presented in other comprehensive
income at the consolidated balance sheet within equity.
(4) The company shall translate the financial statements of overseas operations in an economy with hyperinflation in
accordance with the following methods:
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
The balance sheet items shall be restated using the general price index, and the income statement items shall be
restated using the changes of the general price index, and then translated according to the spot exchange rate on the
latest balance sheet date; when the overseas operation is no longer in the hyperinflationary economy, the restatement
shall be stopped and the financial statements restated shall be converted according to the price level on the cessation
date.
(5) When disposing of foreign operations, exchange differences of foreign currency financial statements attributable to
the foreign operations are transferred to profit or loss for the current period entirely or in proportion with the
disposal portion of the foreign operations.
10 Financial instruments
Financial instruments are the contracts under which the financial assets of an entity are formed and correspondingly
the financial liabilities or equity instruments of any other entity are formed. When a company becomes a party to a
financial instrument contract, the related financial asset or financial liability is recognized.
10.1 Financial assets
10.1.1 Classification and initial measurement
According to the business model of financial assets management and contractual cash flow characteristics of financial
assets, the company divides financial assets into:
a) Financial assets measured at amortized cost;
b) Financial assets measured at fair value through other comprehensive income;
c) Financial assets measured at fair value through profit or loss.
The Company measures financial instruments at fair value upon their initial recognition. The related transaction fees
for the financial assets subsequently measured at fair value through profit or loss are charged in profit or loss directly.
The related transaction fees for other financial assets are included in their initial costs. The Company measures the
accounts receivable and notes receivable deriving from selling goods or providing services at their transaction price if
the accounts receivable and notes receivable do not contain a significant financing component or the Company
applies the practical expedient not considering the significant financing component.
(a) Debt instruments
Debt instruments held by the company refer to those instruments that conform to the definition of financial liabilities
from the perspective of the issuer and are measured in the following three ways:
a) Measured at amortized cost:
The Company classifies a financial asset as subsequently measured at amortized cost that meets both of the following
conditions:
The financial asset is held within a business model whose objective is to collect contractual cash flows; The
contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
The company recognizes interest income on such financial assets in accordance with the effective interest rate method.
Such financial assets mainly include cash at bank and on hand, notes receivable and accounts receivable, contract
assets, other receivables, debt investments, lease receivables and long-term receivables, etc. The company lists the debt
investments and long-term receivables that mature within one year (including one year) from the date of the balance
sheet as non-current assets that mature within one year; debt investments with a maturity of one year (including one
year) at the time of acquisition are listed as other current assets.
b) Measured at fair value through other comprehensive income
The Company classifies a financial asset as subsequently measured at fair value through other comprehensive income
that meets both of the following conditions:
The financial asset is held within a business model whose objective is achieved by both collecting contractual cash
flows and selling the financial asset. The contractual terms give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
Such financial assets are measured at fair value and their changes are included in other comprehensive income, but
assert impairment losses or gains, exchange gains or losses and interest income calculated in accordance with the
effective interest rate method are included in profit or loss for the current period entirely. Such financial assets are
listed as other debt investments, and other debt investments maturing within one year (including one year) from the
date of the balance sheet are listed as non-current assets maturing within one year; other debt investments with a
maturity of one year (inclusive) at the time of acquisition are listed as other current assets.
c) Measured at fair value through profit or loss
The Company classifies a financial asset as subsequently measured at fair value through profit or loss and listed as
financial assets held for trading unless it is subsequently measured at amortized cost or measured at fair value through
other comprehensive income. The Company may make an irrevocable election at initial recognition to designate a
financial asset as subsequently measured at fair value through profit or loss if doing so eliminates or significantly
reduces an accounting mismatch. Other non-current financial assets shall be listed as those that mature more than one
year from the balance sheet date and are expected to be held for more than one year.
(b) equity instrument
The company shall measure the equity instrument investment over which it has no control, joint control or significant
influence according to the fair value through profit and loss, and list it as financial assets held for trading; those
expected to be held for more than one year from the balance sheet date shall be listed as other non-current financial
assets.
In addition, the Company designated part of non-tradable equity instrument investments as financial assets measured
at fair value through other comprehensive income, and listed as other equity instrument investments. The related
dividend income of such financial assets is recorded in the profit or loss for the current period entirely. Once made,
the designation cannot be revoked. Where the contingent consideration recognized by the company in a business
combination not under the common control constitutes a financial asset, the financial asset shall be classified as a
financial asset measured at fair value through profit or loss.
For non-tradable equity instrument investments, the company may, upon initial recognition, irrevocably designate
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
them as financial assets measured at fair value through other comprehensive income. The designation is made on a
single investment basis that meets the definition of an equity instrument from the issuer's point of view.
10.1.2 Impairment of assets
The company recognizes loss provisions on the basis of expected credit losses for financial assets measured at
amortized cost, debt instrument investments which measured at fair value through other comprehensive income, lease
receivables, contract assets and financial guarantee contracts. The Company considers reasonable and reliable
information about past events, current conditions and the forecast of future economic conditions, and takes the risk
of default as the weight to calculate the present value of the difference between the cash flow receivable under the
contract and the cash flow which expected to receive. Then the probability-weighted amount of the present value
should be recognized as expected credit loss.
At each balance sheet date, the company separately measures the expected credit losses of financial instruments
at different stages. If the credit risk of the financial instrument does not increase significantly after the initial
recognition, it is in the first stage, and the company measures the loss provisions according to the expected credit
losses in the next 12 months. If the credit risk of a financial instrument has increased significantly since the initial
recognition but no credit impairment has occurred, the financial instrument is in the second stage, and the
company shall measure the loss provision according to the expected credit loss during the entire life of the
instrument. If a financial instrument has suffered credit impairment since its initial recognition, it is in the third
stage, and the company shall measure the loss provision according to the expected credit losses during the entire
life of the instrument.
The Company calculates interest income based on the book balance and effective interest rate of financial
instruments in stages I and II and with low credit risk. For financial instruments in the third stage, the interest
income shall be calculated on the basis of the amortized cost and the effective interest rate after deducting the
book balance from the provision for impairment.
For notes receivable and accounts receivable, lease receivables and contract assets, regardless of the existence of
a significant financing component, the Company may measure the loss provision in accordance with the
expected credit losses for the entire life of the company.
a) Credit risk significantly increases judgment criteria
At each balance sheet date, the Company evaluates whether the credit risk of the relevant financial instrument
has increased significantly since the initial recognition.
In determining whether credit risk has increased significantly since the initial recognition, the Company considers
that reasonable and evidence-based information that can be obtained without unnecessary additional cost or
effort, including qualitative and quantitative analyses based on historical data of the Company, external credit risk
ratings and forward-looking information Based on a single financial instrument or a combination of financial
instruments with similar credit risk characteristics, the company compares the risk of default of financial
instruments on the balance sheet date with the risk of default on the initial recognition date to determine the
change of the risk of default of financial instruments during their expected lifetime.
When one or more of the following quantitative or qualitative criteria are triggered, the Company believes that
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Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
the credit risk of the financial instrument has increased significantly: a.The quantitative standard is mainly that
the default probability of the remaining duration on the reporting date increases by more than a certain
proportion compared with the initial confirmation; b.The qualitative criteria mainly include the occurrence of
significant adverse changes in the debtor's business or financial situation, the list of early warning customers, etc;
c.The upper limit indicator is that the debtor's contract payment (including principal and interest) is generally
overdue for more than 90 days, and the longest is not more than 180 days.
b) Definition of assets with credit impairment
In order to determine the occurrence of credit impairment, the definition criteria adopted by the Company are
consistent with the internal credit risk management objectives for the relevant financial instruments, and both
quantitative and qualitative indicators are taken into account. When evaluating whether the debtor has credit
impairment, the company mainly considers the following factors: a. The issuer or the debtor has significant
financial difficulties; b. The debtor violates the contract, such as default or overdue payment of interest or
principal, etc.; c. Concessions granted by the creditor to the debtor for economic or contractual reasons related
to the debtor's financial difficulties that would not have been made in any other circumstances; d. The debtor is
likely to go bankrupt or undergo other financial restructuring; e. Financial difficulties of the issuer or debtor
cause the disappearance of the active market for the financial asset; f. To purchase or generate a financial asset at
a substantial discount that reflects the fact that a credit loss has occurred.
The occurrence of credit impairment of financial assets may be caused by the joint action of multiple events, not
necessarily by independently identifiable events
c) Parameters for the measurement of expected credit losses
Depending on whether there is a significant increase in credit risk and whether there has been a credit
impairment, the company measures the impairment provisions for different assets at the expected credit losses
of 12 months or the whole life. The key parameters of expected credit loss measurement include default
probability, default loss rate and default risk exposure. The company considers quantitative analysis and
prospective information of historical statistical data (such as counterparty rating, guarantee method and category
of pledge, repayment method, etc.) to establish probability of default, loss given default rate and default risk
exposure model.
Relevant definitions are as follows:
a. Probability of default refers to the possibility that the debtor will be unable to fulfill its payment obligations in the
next 12 months or in the entire remaining term. The default probability of the company is adjusted based on the
results of the historical credit loss model, and forward-looking information is added to reflect the default probability
of the debtor in the current macroeconomic environment.
b. Loss given default rate refers to the company's expectation of the loss degree of default risk exposure. Loss given
default rates vary depending on the type of counterparty, method of recourse and priority, and collateral. The loss
given default rate is the percentage of the risk exposure loss at the time of default and is calculated on the basis of the
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next 12 months or the entire lifetime;
c. Default risk exposure model is the amount payable to the company at the time of default in the next 12 months or
for the remainder of its life.
d) Prospective information
Prospective information is involved in both the evaluation of the significant increase of credit risks and the calculation
of expected credit loss. By analyzing historical data, the Company identifies credit risks for all business types and key
economic indicators for expected credit loss.
When the Company is unable to evaluate expected credit loss at reasonable cost for a single asset, the Company
divides accounts receivable into several groups based on credit risk characteristics and calculates expected credit loss
by groups. The basis for group determination is as follows:
Item Basis for group Method of measuring expected credit loss
determination
Banker’s acceptance receivable Acceptor The Company calculates expected credit loss using
default risk exposure and the lifetime expected credit
loss rate by reference to historical experience of credit
loss and based on current conditions as well as
forecasts of future economic conditions.
Trade acceptance receivable Acceptor By aging analysis
Accounts receivable - group of Companies within the The Company measures bad debt provisions by
related parties consolidated scope reference to historical experience of credit loss and
based on forecasts of future economic conditions.
Accounts receivable - group of Companies outside the The Company calculates expected credit loss using
external clients consolidated scope and aging and the lifetime expected credit loss rate.
Lease receivable - group of third-party clients
external clients
Contract assets - group of Companies outside the The Company calculates expected credit loss using
external clients consolidated scope and aging and the lifetime expected credit loss rate.
third-party clients
Other receivables - group of Companies within the The Company measures bad debt provisions by
related parties consolidated scope reference to historical experience of credit loss and
based on forecasts of future economic conditions.
Other receivables - group of Companies outside the The Company measures loss provisions using the
external clients consolidated scope and general method, namely, the “three phases” model.
third-party clients
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Long-term receivables - group Companies outside the The Company measures loss provisions using the
of external clients consolidated scope and general method, namely, the “three phases” model.
third-party clients
The comparison table between the aging of accounts receivable portfolio and the expected credit loss rate of the entire
life of accounts receivable portfolio and lease receivable portfolio:
Account receivable age Expected credit loss rate on accounts receivable
Within 6 months 5.00%
Six months to a year 10.00%
1 to 2 years 30.00%
2 to 3 years 50.00%
More than 3 years 100.00%
For other receivables divided into portfolios, the company refers to historical credit loss experience, combined with
current conditions and forecasts of future economic conditions, through default risk exposure and the expected credit
loss rate within the next 12 months or the entire duration to calculate the expected credit loss. In order to reflect the
changes in the credit risk of financial instruments since the initial recognition, the company and its subsidiaries re-
measure the expected credit losses on each balance sheet date, and the resulting increase or reversal of the loss
provision shall be regarded as impairment losses or the profit is included in the current profit and loss. For financial
assets measured at amortized cost, the loss provision is deducted from the book value of the financial assets listed in
the balance sheet; for debt investments measured at fair value through other comprehensive income, the loss
provision in the company and its subsidiaries is recognized in other comprehensive income without deducting the
book value of the financial asset.
10.1.3 Terminate confirmation
The recognition of a financial asset shall be terminated if it meets any of the following conditions:
a. Termination of the contractual right to receive the cash flow of the financial asset;
b. The financial asset has been transferred, and the Company has transferred almost all the risks and rewards in the
ownership of the financial asset to the transferee;
c. The financial asset has been transferred. Although the company neither transfers nor retains almost all risks and
rewards in the ownership of the financial asset, it gives up control over the financial asset.
When other equity instrument investment is terminated for recognition, the difference between its book value and the
sum of the consideration received and the accumulative amount of the fair value changes originally recorded directly
into other comprehensive income shall be recorded into retained earnings; When the recognition of other financial
assets is terminated, the difference between its book value and the sum of the consideration received and the
accumulative amount of fair value changes originally recorded directly into other comprehensive income shall be
recorded into the profit or loss for the current period.
10.1.4 Write-off
If the company and its subsidiaries no longer reasonably expect to recover all or part of the contractual cash flow of
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the financial asset, the book balance of the financial asset shall be directly written down. Such write downs constitute a
termination recognition of the underlying financial asset. This typically occurs when the company and its subsidiaries
determine that the debtor has no assets or sources of income that can generate sufficient cash flow to repay the
amount to be written down. However, in accordance with the procedures for the company and its subsidiaries to
recover amounts due, the financial assets that are written down may still be affected by the execution activities.
If the financial assets that have been written down are recovered later, they shall be included in the profit or loss for
the current period as the reversal of the asset impairment loss.
10.2 Financial liabilities
Financial liabilities are classified into financial liabilities measured at amortized cost and financial liabilities measured at
fair value through profit or loss at the time of initial recognition.
The Company classifies financial liabilities as financial liabilities measured at amortized cost, except as follows:
(a) Financial liabilities measured at fair value through profit or loss, including financial liabilities held for trading
(including derivatives that are financial liabilities) and financial liabilities designated at fair value through profit or loss.
(b) Financial liabilities that arise when transfers of financial assets do not qualify for derecognition or when the
continuing involvement approach applies
(c) Financial guarantee contracts which are not classified as (a) or (b) and commitments to provide a loan at a
below market interest rate which are not classified as (a). In a business combination not under the common control,
if the company is recognized as the purchaser of the contingent consideration and forms financial liabilities, the
financial liabilities shall be measured at fair value through profit and loss.
At the time of initial recognition, in order to provide more relevant accounting information, the company may
designate financial liabilities as financial liabilities measured at fair value through profit or loss for the current period.
Such designation satisfies one of the following conditions:
(a) Can eliminate or significantly reduce accounting mismatches.
(b) Manage and evaluate the portfolio of financial liabilities or financial assets and portfolio of financial liabilities on
the basis of fair value in accordance with the enterprise risk management or investment strategy stated in formal
written documents, and report to key management personnel within the company on this basis. Once made, the
designation cannot be revoked.
The company's financial liabilities are mainly financial liabilities measured at amortized cost, including notes payable
and accounts payable, other payables, loans and bonds payable, etc. This kind of financial liability is initially measured
at its fair value after deducting transaction expenses, and the effective interest rate method is adopted for subsequent
measurement. Where the maturity is less than one year (including one year), it is listed as current liabilities; Where the
maturity is more than one year but matures within one year (including one year) from the date of the balance sheet, it
is shown as the non-current liabilities due within one year; The remainder is shown as non-current liabilities.
When the current obligation of a financial liability (or a part of it) has been discharged, the company derecognizes the
part of the financial liability or the discharged obligation. The difference between the book value of the derecognized
part and the consideration paid is included in the current profit and loss.
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When the current obligation of a financial liability (or a part of it) has been discharged, the company derecognizes the
financial liability (or this part of the financial liability).
10.3 Measurement method of financial instruments' fair value
For financial instruments that active markets exist, the Company uses the quoted prices in the active markets to
determine their fair value. If there is no active market for the financial instruments, the Company uses valuation
techniques to determine their fair value. When valuing, the company adopts valuation techniques that are applicable
under the current circumstances and that there are sufficient available data and other information to support, and
selects a valuation technique that is consistent with the characteristics of the asset or liability considered by market
participants in the transaction of the relevant asset or liability. Input values and, where possible, prefer relevant
observable input values. Unobservable input values are used when the relevant observable input values are unavailable
or impractical to obtain.
10.4 Subsequent measurement
After initial recognition, the company shall make subsequent measurement of different types of financial assets at
amortized cost, measured at fair value through other comprehensive income, or measured at fair value through profit
and loss.
After initial recognition, the company shall make subsequent measurement of different types of financial liabilities at
amortized cost, measured at fair value through profits and losses or through other appropriate methods.
The amortized cost of a financial asset or financial liability shall be determined by the following adjustment of the
initial recognized amount of the financial asset or financial liability:
(a) Deduct the principal already repaid.
(b) Plus or minus the cumulative amortization amount formed by amortizing the difference between the initial
recognition amount and the amount at maturity using the effective interest rate method.
(c) Deduct the accumulated loss provisions (only applicable to financial assets).
The company recognizes interest income according to the effective interest rate method. Interest income is calculated
and determined by multiplying the book balance of the financial asset by the actual interest rate, except in the
following cases:
(a) For the financial assets acquired or originated with credit impairment, the Company shall calculate and determine
the interest income according to the amortized cost of the financial asset and the effective interest rate adjusted by
credit since the initial recognition.
(b) For financial assets purchased or generated without credit impairment but which become credit impairment in
subsequent periods, the Company shall calculate and determine its interest income according to the amortized cost
and effective interest rate of the financial asset in subsequent periods. Company according to the policy of the
financial asset amortized cost using the actual interest rate method to calculate the interest income, if the financial
instruments in the subsequent period no longer exist for its credit risk has improved credit impairment, and the
improved objectively and application after the policy associated with the occurrence of an event, such as the debtor's
credit rating was raised, The company turns to the actual interest rate multiplied by the book balance of the financial
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asset to determine the interest income.
11. Notes receivable
For the determination and accounting treatment of expected credit losses of notes receivable, please refer to Note IV,
10 -- Financial Instruments.
12.Accounts receivable
For the determination and accounting treatment of expected credit losses of accounts receivable, please refer to
Notes IV, 10 -- Financial Instruments.
13. Receivables for financing
For the determination and accounting treatment of expected credit losses of receivables for financing, please
refer to Note IV, 10 -- Financial Instruments.
14. Other receivables
For the determination and accounting treatment of other expected credit losses of other receivables, please refer to
Note IV, 10 -- Financial Instruments.
15 Inventories
15.1 Categories of inventories
Inventories include raw materials, work-in-progress, semi-finished products, finished products, commodities in stock,
turnover materials, low-value consumables and contract performance costs., etc. The "Contract performance cost" are
detailed in 17, "Contract Costs".
15.2 Measurement of inventories upon delivery
Weighted average method is used to measure the actual costs of inventories upon delivery.
15.3 Provision for diminution in value of inventories
At each balance sheet date, inventories are measured at the lower of cost and net realizable value. When the cost of
inventory exceeds its net realizable value, provision for diminution in value of inventories is recognized and included
in the current profit and loss.
Net realizable value refers to the estimated selling price of inventories in daily activities minus the estimated costs to
be incurred upon completion, estimated selling expenses and related taxes.
The basis for determining the net realizable value of various inventories is as follows:
(a) Finished products, commodities in stock and materials for sale that directly used for sale are the estimated selling
price minus the estimated cost of sales and relevant taxes.
(b) Materials held for production are based on cost measurement when the finished products’ net realizable value is
higher than cost; the material price decline shows that the finished products’ net realizable value is lower than cost, net
realizable value is calculated as an estimated sales price minus the estimated cost, the cost of sales and the relevant
taxes amount.
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(c) On the balance sheet date, if a part of the same inventory has contract price and the other parts do not have
contract price, the net realizable value shall be determined respectively, and the corresponding cost shall be compared
to determine the amount of withdrawal or reversal of the inventory depreciation reserve.
Goods in stock drops in price preparing shall be made on a single inventory item (or category of inventory) and
consolidated for inventories that are related to product series produced and sold in the same region, have the same or
similar end use or purpose, and are difficult to measure separately from other items.
15.4 Inventory count system
The Company adopts the perpetual inventory system.
15.5 Amortization methods of low-value consumables
Low-cost consumables are amortized by the equal-split amortization method.
16 Contract assets
16.1 Method and standard for the confirmation of contract assets
A contractual asset is a right to receive consideration that has been transferred to a customer and that right depends
on factors other than the passage of time. Contract assets and liabilities under the same contract shall be shown on a
net basis, and those under different contracts shall not be set off.
16.2 Determination method and accounting treatment method of expected credit loss of contract assets
The provision for impairment of contractual assets shall refer to the expected credit loss method of financial
instruments. For contract assets that do not contain significant financing components, the Company adopts a
simplified method to measure loss provisions. For the contract assets containing significant financing elements, the
Company shall measure the loss provisions in accordance with the general method.
In the event of an impairment loss on a contract asset, the “asset impairment loss” shall be debited according to the
amount to be written down, and the contract asset impairment provision shall be credited; the reverse entry shall be
made when the accrued asset impairment provision is reversed.
17 Contract costs
17.1 Determination method of asset amount related to contract costs
The contract costs of the Company include the incremental costs to obtain a contract and the costs to fulfil a contract.
If the costs incurred in fulfilling a contract with a customer are not within the scope of another standard like
Accounting Standards for Business Enterprises No. 14 - Revenue (Revised in 2017), they will be treated as the costs to
fulfil a contract and recognized as an asset when meeting the following conditions:
(a) the costs relate directly to a contract or to an anticipated contract that the Company can specifically identify,
including direct labour, direct materials, allocations of costs that relate directly to the contract, costs that are explicitly
chargeable to the customer under the contract and other costs that are incurred only because the Company entered
into the contract;
(b) the costs generate or enhance resources of the Company that will be used in satisfying performance obligations in
the future;
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(c) the costs are expected to be recovered.
The cost of obtaining the contract, that is, the incremental cost of obtaining a contract is expected to be recovered, is
recognized as an asset as contract acquisition cost. Incremental costs are costs that would not have occurred without
the acquisition of the contract. If the amortization period of the asset does not exceed one year, it may be recorded
into the profit or loss for the current period at the time of occurrence.
Expenditures incurred by the enterprise to obtain the contract, other than incremental costs expected to be recovered,
shall be recorded in the profit or loss for the current period when incurred, unless these expenditures are expressly
borne by the customer.
17.2 Amortization of assets related to contract costs
Assets related to contract costs are amortized on the same basis as the commodity revenue related to the asset is
recognized, and are included in the current profit and loss.
17.3 Impairment of assets related to contract costs
The Company recognizes an impairment loss in profit or loss to the extent that the carrying amount of an asset
recognized exceeds:
(a) the remaining amount of consideration that the Company expects to receive in exchange for the goods or services
to which the asset relates; less
(b) the costs that relate directly to providing those goods or services and that are estimated to incur.
When the impairment conditions no longer exist or have improved that make the total of (a) and (b) higher than
carrying amount of an asset, the Company will recognize in profit or loss a reversal of some or all of an impairment
loss previously recognized. The increased carrying amount of the asset will not exceed the amount that would have
been determined (net of amortisation) if no impairment loss had been recognized previously.
18 Hold assets for sale
18.1 Non-current assets held for sale and disposal group recognition criteria
A company that recovers its carrying value primarily through sales (including exchange of non-monetary assets of
commercial substance, the same below) rather than the ongoing use of a non-current asset or disposal group will
classify it as held for sale. The specific criteria are as follows:
(a) In accordance with the practice of selling such assets or disposal groups in similar transactions, they can be sold
immediately under the current conditions.
(b) The sale is very likely to occur, that is, the company has made a resolution on a sale plan and obtained a firm
purchase commitment, and the sale is expected to be completed within one year.
Among them, the disposal group refers to a group of assets that are disposed of as a whole in a transaction through
sale or other means, and the liabilities directly related to these assets transferred in the transaction. If the asset group
or combination of asset groups to which the disposal group belongs has apportioned the goodwill obtained in the
business combination in accordance with the Accounting Standards for Business Enterprises No. 8 – Impairment of
Assets, the disposal group shall include the goodwill apportioned to the disposal group.
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18.2 Accounting treatment
When the initial measurement or re-measurement on the balance sheet date is divided into non-current assets held for
sale and disposal group, if the book value is higher than the net amount after the fair value minus the cost of sale, the
book value is written down to the fair value The net amount after deducting the selling expenses, the written-down
amount is recognized as asset impairment loss, which is included in the current profit and loss, and at the same time,
an impairment provision for assets held for sale is made. For the disposal group, the recognized asset impairment loss
is first deducted from the book value of the goodwill in the disposal group, and then deducted proportionally to the
"Accounting Standards for Business Enterprises No. 42 - Non-current Assets Held for Sale, The book value of each
non-current asset specified in the measurement of "Disposal Group and Discontinued Operation" (hereinafter
referred to as "Hold-for-sale Standards"). If the net amount of the disposal group held for sale on the subsequent
balance sheet date increases after deducting the selling expenses, the previously written down amount shall be restored,
and the held-for-sale standard shall be applied after being classified as held-for-sale The amount of asset impairment
loss recognized for non-current assets subject to measurement requirements shall be reversed, and the reversal
amount shall be included in the current profit and loss, and the book value of each non-current asset in the disposal
group shall be subject to the measurement provisions of the held-for-sale standard except for goodwill. The
proportion increases its book value proportionally; the book value of goodwill that has been written off, and the non-
current assets that are subject to the measurement requirements of the held-for-sale standard, the asset impairment
loss recognized before being classified as held-for-sale shall not be reversed.
No depreciation or amortization is provided for the non-current assets held for sale or the non-current assets in the
disposal group, and the interest and other expenses of the liabilities in the disposal group held for sale continue to be
recognized.
When the non-current assets or disposal groups no longer meet the classification conditions of the held-for-sale
category, they will no longer be classified as held-for-sale categories or the non-current assets will be removed from
the held-for-sale disposal group, and the lower of the following is measured:
(a) The book value before being classified as held-for-sale category, adjusted according to the depreciation,
amortization or impairment that should have been recognized under the assumption that it was not classified as held-
for-sale category;
(b) The recoverable amount.
19 Debt investment
For the confirmation method and accounting treatment method of expected credit loss of debt investment, please
refer to Note IV. 10 - Financial Instruments.
20 Other debt investments
For the confirmation method and accounting treatment method of expected credit losses of other debt investments,
please refer to Note IV. 10 - Financial Instruments.
21 Long-term receivables
For the confirmation method and accounting treatment method of the expected credit loss of long-term receivables,
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please refer to Note IV. 10 - Financial Instruments.
22 Long-term equity investment
Long-term equity investment refers to the equity investment in which the company controls and has significant
influence on the investee, as well as the investment in its joint ventures.
22.1 Determination of initial investment cost
Long-term equity investment acquired through a business combination: For a business combination involving
enterprises under common control, the initial investment cost of a long-term equity investment is the holding share of
the acquiree's equity in the ultimate controlling party's consolidated financial statements measured at the carrying
amounts at the acquisition date. For a business combination not involving enterprises under common control, the
initial investment cost of a long-term equity investment is the cost of acquisition determined at the date of acquisition.
For a long-term equity investment acquired in cash, the initial investment cost is the amount of cash paid. For a long-
term equity investment acquired by issuing equity securities, the initial investment cost is the fair value of the equity
securities issued. For a long-term equity investment acquired by debt restructuring, the initial investment cost is
determined according to related requirements of Accounting Standards for Business Enterprises No. 12- Debt
Restructuring. For a long-term equity investment acquired by exchange of non-cash assets, the initial investment cost
is determined according to related requirements of Accounting Standards for Business Enterprises No. 7- Exchange
of Non-monetary Assets.
22.2 Subsequent measurement and recognition of profit or loss
a) Where the Company is able to exercise control over an investee, the long-term equity investment is accounted for
using the cost method.
Long-term equity investments accounted for using the cost method are priced at the initial investment cost. Additional
or recovered investment should adjust the cost of long-term equity investment. Cash dividends or profits announced
to be distributed by the investee are recognized as investment income for the current period.
b) Where the Company has investment in associates and joint ventures, the long-term equity investment is accounted
for using the equity method.
When the long-term equity investment is accounted for by the equity method, if the investment cost of the long-term
equity investment is greater than the share of the fair value of the identifiable net assets of the investee at the time of
investment, the investment cost of the long-term equity investment shall not be adjusted; the investment cost of the
long-term equity investment is less than If the investee should enjoy a share of the fair value of the identifiable net
assets of the investee at the time of investment, the book value of the long-term equity investment shall be adjusted,
and the difference shall be included in the current profit and loss of the investment.
In the equity method accounting, when long-term equity investment is obtained, the investment profit and loss and
other comprehensive income are respectively recognized according to the share of net profit and loss and other
comprehensive income realized by the investee that should be enjoyed or shared, and the book value of long-term
equity investment shall be adjusted. The investing enterprise shall calculate the portion that should be distributed
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according to the profits or cash dividends declared and distributed by the invested unit, and correspondingly reduce
the book value of the long-term equity investment. The investor shall adjust the book value of the long-term equity
investment and include it in the owner's equity for other changes in the owner's equity other than the net profit and
loss, other comprehensive income and profit distribution of the investee.
To confirm the net loss of the investee, the book value of the long-term equity investment and other long-term equity
that substantially constitutes the net investment in the investee shall be written down to zero, unless the company is
obliged to bear additional losses to the investee . If the invested unit realizes a net profit in the future, the investing
enterprise shall resume the recognition of the profit-sharing amount after its profit-sharing amount makes up for the
unrecognized loss-sharing amount. For other changes in the owner's equity of the investee other than net profit and
loss, other comprehensive income and profit distribution, the book value of the long-term equity investment is
adjusted and included in the owner's equity.
Long-term equity investments are accounted for under the equity method. When recognizing investment gains and
losses, the net profit of the investee is first adjusted to the fair value of the investee's identifiable assets, accounting
policies and accounting periods when the investment is obtained, and then adjustments should be made according to
the appropriate amount. The net profit or loss share of the investee that enjoys or should be shared is recognized in
the current investment profit and loss. The unrealized profit and loss of internal transactions with associates and joint
ventures shall be calculated according to the shareholding ratio and attributable to the company, and the investment
profit and loss shall be recognized on the basis of offset.
4.22.3 Basis for recognition of joint control or significant influence over an investee
Joint control refers to the common control of an arrangement in accordance with relevant agreements, and the
relevant activities of the arrangement must be decided by the unanimous consent of the participants sharing the
control rights. When judging whether there is joint control, the first determine is whether all participants or a
combination of participants collectively control the arrangement. If all participants or a group of participants must
act in unison to decide the relevant activities of an arrangement, it is considered that all participants or a group of
parties collectively control the arrangement. Secondly, it is judged whether the decision-making of the relevant
activities of the arrangement must be unanimously agreed by the participants who collectively control the
arrangement. If there is a combination of two or more parties that can collectively control an arrangement, it does not
constitute joint control. When judging whether there is joint control, the protective rights enjoyed are not considered.
Significant influence refers to the power to participate in the decision-making of an enterprise's financial and
operating policies, but cannot control or jointly control the formulation of these policies with other parties. When
determining whether it can exert significant influence on the investee, consider the voting shares directly or indirectly
held by the investor and the impact of current executable potential voting rights held by the investor and other parties
after it is assumed to be converted into the equity of the investee, including the current convertible warrants, share
options and convertible corporate bonds issued by the investee.
23 Investment property
Investment real estate refers to real estate held for rent or capital appreciation, or both, including leased land use rights,
land use rights held and ready to be transferred after appreciation, and leased buildings.
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Investment property of the Company use rights held for resale after appreciation. Investment property is initially
measured at acquisition cost, and is subsequently measured using the cost method or using the fair value model.
23.1 Using the cost model
The investment real estate is depreciated or amortized on a straight-line basis according to the following service life
and estimated net residual value rate:
Category Depreciation period (years) Residual rate Annual depreciation rate
Buildings 20-40 0%-10% 2.25%-5.00%
23.2 Using the fair value model
No depreciation or amortization is made for investment real estate, and its book value is adjusted based on the fair
value of the investment real estate on the balance sheet date, and the difference between the fair value and the original
book value is included in the current profit and loss.
24 Fixed assets
24.1 Recognition criteria for fixed assets
Fixed assets refer to tangible assets held for the purpose of producing commodities, services rendering, renting or
business administration with useful lives exceeding one accounting year. Fixed assets can be recognized when the
following criteria are met: a) It is probable that the economic benefits relating to the fixed assets will flow into the
Company; and b) The costs of the fixed assets can be measured reliably.
24.2 Classification and depreciation method of fixed assets
The categories of fixed assets mainly include: buildings, boats & nets, machinery & equipment, transportation
equipment, furniture and office equipment. The Company adopts the straight line method for depreciation. The useful
life and residual value of an asset is assessed based on its nature and the manner of use. At the end of each financial
year, the useful lives, residual values and the depreciation method are reviewed, and adjusted if there are variances with
the original estimates. Other than fully depreciated assets which are still in use and land individually measured and
recorded, depreciation is provided for all fixed assets.
Category The method for Depreciation period Residual rate Annual depreciation rate
depreciation (years)
Buildings Straight-line depreciation 20-40 0%-10% 2.25%-5.00%
Boats & nets Straight-line depreciation 5-30 3%-5% 3.17%-19.40%
Machinery & equipment Straight-line depreciation 8-20 0%-10% 4.50%-12.50%
Transportation equipment Straight-line depreciation 5 0%-10% 18.00%-20.00%
Furniture and office equipment Straight-line depreciation 5 0%-10% 18.00%-20.00%
25 Construction in progress
The construction in progress of the Company includes self-construction and sub-contracting construction.
Construction in progress is transferred to fixed assets when it has reached the working condition for its intended use.
The recognition criteria of intended use include any of the followings: a) The tangible work of fixed assets (including
installation) have been entirely or substantively completed; b) Trial production or trial operation has occurred whose
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outcome indicates the asset can be operated properly or manufacture quality product steadily; c) No expenditure or
insignificant expenditure occur subsequently for the constructed asset; d) The constructed asset has achieved or
substantively achieved the requirement of design or contract.
26 Borrowing costs
26.1 Recognition criteria for capitalization of borrowing costs
Borrowing costs are capitalized when they are directly attributable to the acquisition, construction or production of a
qualifying asset and included in the cost of related assets. Qualifying assets that meet conditions for capitalization are
fixed assets, investment property, inventory or other assets that take a substantial period of time for construction or
production in order to get ready for their intended use or sale. Other borrowing costs are recognized as expenses and
recorded in profit or loss for the current period when incurred. Borrowing costs include borrowing interest,
amortization of discount or premium, auxiliary expenses, and foreign exchange differences arising from foreign
currency borrowings.
26.2 Borrowing costs will be capitalized if they meet the following conditions at the same time
(a) The asset expenditure has occurred, and the asset expenditure includes the cash paid for the purchase, construction
or production of assets eligible for capitalization, the transfer of non-cash assets or the payment of interest-bearing
debts;
(b) The borrowing costs have been incurred;
(c) The acquisition, construction or production activities necessary to make the asset ready for its intended use or sale
have begun.
The capitalization of borrowing costs shall cease when the purchased, constructed or produced assets that meet the
capitalization conditions are ready for intended use or sale. If an asset that meets the capitalization conditions is
abnormally interrupted in the process of acquisition, construction or production, and the interruption lasts for more
than 3 months, the capitalization of borrowing costs will be suspended. The borrowing costs incurred during the
interruption period are recognized as expenses and included in the current profit and loss until the acquisition,
construction or production of the asset resumes. The capitalization of borrowing costs continues if the interruption
is a necessary procedure for the acquired, constructed or produced assets eligible for capitalization to be ready for
their intended use or sale.
26.3 During the capitalization period, the capitalized amount of interest (including the amortization of discount or
premium) for each accounting period shall be determined in accordance with the following provisions:
(a) If a special loan is borrowed for the purchase, it is determined by the amount interest expense actually incurred in
the current period of the special loan, minus the interest income obtained from the unused loan funds or the
investment income obtained from temporary investment.
(b) If general borrowings are occupied for the purchase, it is determined by the weighted average of accumulated asset
expenditures of the accumulated asset expenditures in exceed the special borrowings by the capitalization rate of
occupied general borrowings. The capitalization rate is determined based on the weighted average interest rate of
general borrowings.
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If there is a discount or premium on the loan, the amount of the discount or premium amortized in each accounting
period shall be determined according to the actual interest rate method, and the interest amount of each period shall
be adjusted. During the capitalization period, the capitalized amount of interest in each accounting period shall not
exceed the actual amount of interest incurred on the relevant borrowings in the current period.
26.4 The auxiliary expenses incurred by special borrowing, which are incurred before the purchased, built or produced
assets meeting the capitalization conditions reach the scheduled state of being available for use or sale, shall be
capitalized according to the amount incurred when incurred and included into the cost of the assets meeting the
capitalization conditions; Where an asset purchased, built or produced conforming to the capitalization conditions has
reached the pre-scheduled state of being usable or saleable, it shall be recognized as an expense according to the
amount incurred at the time of occurrence and recorded into the profit or loss for the current period. Auxiliary
expenses incurred by general borrowing shall be recognized as expenses according to the amount incurred when
incurred, and shall be recorded into the profit or loss for the current period.
27 Right-of-use assets
The right-of-use assets class of the company mainly includes housing and buildings.
27.1 Conditions for the confirmation of the right-of-use assets
The right-of-use assets refer to the right that the company, as the lessee, can use the leased assets during the lease term.
The company shall confirm the right-of-use assets on the date when the lease term begins. Right-of-use assets are
recognized when economic benefits are likely to flow in and costs can be measured reliably.
27.2 Initial measurement of right-of-use assets
The right-of-use assets are initially measured at cost, which includes:
(a) The initial measurement amount of lease liabilities.
(b) The amount of lease payment paid on or before the beginning of the lease term, if there is lease incentive, will be
deducted from the amount of lease incentive already enjoyed.
(c) Initial direct expenses incurred by the lessee.
(d) The expected costs incurred by the lessee in disassembling and removing the leased asset, restoring the site where
the leased asset is located or restoring the leased asset to the state stipulated in the lease terms.
27.3 Subsequent measurement of the right-of-use assets
(a) Use the cost model to measure the right-of-use assets.
(b) Depreciation of the right-of-use assets. Where the ownership of the leased asset can be reasonably determined at
the end of the lease term, the company shall calculate depreciation during the remaining service life of the leased asset.
Where it is not reasonably certain that the ownership of the leased asset can be acquired at the end of the lease term,
the company shall calculate depreciation during the period during which the lease term and the remaining service life
of the leased asset are shorter. The specific depreciation methods of various right-of-use assets are as follows.
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27.4 Depreciation methods of various right-of-use assets
All types of fixed assets are depreciated using the straight-line method according to the following service life time,
estimated net residual value rateand depreciation rate:
Category The method for depreciation Depreciation period (years) Residual rate Annual depreciation rate
Buildings Straight-line depreciation 1.5-3 - -
27.5 Change of lease
When the lease liabilities are re-measured according to the present value of the changed lease payments and the book
value of the right-of-use assets is adjusted accordingly, if the book value of the right-of-use assets has been reduced to
zero but the lease liabilities still need to be further reduced, the remaining amount shall be recorded into the profit or
loss for the current period.
27.6 Impairment test method and impairment provision method of usufruct
On the balance sheet date, if there is any indication that the right-of-use assets are impaired, the corresponding
impairment provision shall be set aside according to the difference between the carrying value and the recoverable
amount.
28 Intangible assets
28.1 Intangible assets refer to identifiable non-monetary assets without physical form owned or controlled by an
enterprise. Intangible assets are initially measured at cost, and their service life is analyzed and judged upon acquisition
of intangible assets.
28.2 The company usually considers the following factors in determining the service life of intangible assets:
(a) The usual life cycle of the products produced with the asset and the available information about the service life of
similar assets;
(b) The current situation of technology and process and the estimation of the future development trend;
(c) Market demand for products or services produced by the assets;
(d) Actions expected by current or potential competitors;
(e) The expected maintenance expenditure to maintain the ability of the asset to bring economic benefits, and the
company's expected ability to pay the related expenditure;
(f) Relevant legal provisions or similar restrictions on the asset control period, such as the franchise period, lease
period, etc.;
(g) Correlation with the service life of other assets held by enterprises.
If it is impossible to foresee the period during which intangible assets bring economic benefits to the company, they
shall be regarded as intangible assets with uncertain service life.
28.3 For intangible assets with limited service life, they shall be amortized systematically and reasonably (or by straight
line method) during their service life. At the end of each year, the company shall review the service life and
amortization method of intangible assets with limited service life. If the service life and amortization method of
intangible assets are different from those previously estimated, the amortization period and amortization method will
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be changed.
For intangible assets with limited service life, when the straight-line method is used to calculate the amortization
amount, the service life and residual rate of each intangible asset are as follows:
Category Amortization period (years) Residual rate
land use rights 42-49 0%
software 5-10 0%
28.4 Internally generated projects
(a) Expenditure of internal research and development project, including expenditure of research stage and expenditure
of development stage, among which: Research is an original and planned investigation for the acquisition and
understanding of new scientific or technical knowledge; Development refers to the application of research results or
other knowledge to a plan or design for the production of new or substantially improved materials, devices, products,
etc., prior to commercial production or use.
(b) Expenditure in the research phase is recognized as an expense in profit or loss for current period when it is
incurred. Expenditure in the development phase of internally generated projects is capitalized if they meet the
following conditions at the same time:
1) It is technically feasible to complete the intangible asset so that it can be used or sold;
2) The intent that the intangible asset can be completed and used or sold;
3) The way in which the intangible assets can generate economic benefits include the ability to prove that the products
produced by using the intangible assets have a market or that the intangible assets themselves exist in the market. If
the intangible assets will be used internally, its usefulness shall be proved;
4) Have sufficient technical, financial and other resource support to complete the development of the intangible asset
and have the ability to use or sell the intangible asset;
5) Expenses attributable to the development stage of the intangible asset can be measured reliably.
29 Goodwill
Goodwill is the difference between the initial merger cost and the fair value share of identifiable net assets acquired in
the combination of enterprises not under common control. The company does not amortize goodwill, which is
measured by the amount of costs less accumulated impairment provisions and shown separately in the consolidated
balance sheet.
30 Impairment of long-term assets
For fixed assets, construction in process, intangible assets with limited service life, investment property measured by
cost model and non-current non-financial assets such as long-term equity investment in subsidiaries, cooperative
enterprise and associated enterprises, the company shall judge whether there is any sign of impairment on the balance
sheet date. If there is any indication of impairment, the recoverable amount shall be estimated and the impairment test
shall be conducted. Goodwill, intangible assets with uncertain service life and intangible assets that have not yet
reached a usable state, regardless of whether there are signs of impairment, are tested for impairment every year.
If the impairment test results show that the recoverable amount of an asset is lower than its carrying value, the
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impairment provision shall be made and the impairment loss shall be recorded according to the difference. The
recoverable amount is the higher of the net value of the fair value of the asset less the disposal expense and the
present value of the estimated future cash flows of the asset. The fair value of the asset is determined according to the
sales agreement price in a fair transaction; If there is no sales agreement but there is an active market for the asset, the
fair value shall be determined according to the bid price of the buyer of the asset; Where there is no sale agreement
and an active market for the asset, the fair value of the asset is estimated based on the best available information.
Disposal costs include legal fees related to the disposal of assets, related taxes, handling fees and direct expenses
incurred to bring the assets into a saleable state. The present value of the estimated future cash flow of an asset is
determined according to the estimated future cash flow generated during the continuous use of the asset and the final
disposal by choosing an appropriate discount rate. The asset impairment reserve is calculated and recognized on the
basis of a single asset. If it is difficult to estimate the recoverable amount of a single asset, the recoverable amount of
the asset group to which the asset belongs shall be determined. Asset group is the minimum portfolio of assets that
can generate cash inflow independently.
As for the impairment test of goodwill, the book value of goodwill formed as a result of business combination shall be
allocated to the relevant asset group in a reasonable way from the purchase date; If it is difficult to allocate to the
related asset group, allocate to the related asset group portfolio. The relevant asset group or asset group combination
is the asset group or asset group combination that can benefit from the synergies of the business combination and is
not larger than the reporting segment identified by the Company.
When conducting impairment tests on related asset groups or asset group combinations containing goodwill, if there
are signs of impairment in the asset groups or asset group combinations related to goodwill, the impairment tests shall
first be conducted on the asset groups or asset group combinations that do not contain goodwill to calculate
recoverable amounts and confirm the corresponding impairment losses. And goodwill of the asset group or
combination of group assets impairment test, comparing its book value and recoverable amount, such as the
recoverable amount is lower than the book value, the amount of impairment loss first deduction allocation to the asset
group or combination of group assets in the book value of the goodwill, again according to the asset group or
combination of group assets all assets except goodwill in the book value of the share, Deduct the carrying value of
other assets in proportion, provided that the carrying value of each asset after deduction shall not be less than the net
of the fair value of the asset minus disposal expenses (if determined) and the present value of the estimated future
cash flows of the asset (if determined), whichever is higher, and shall not be less than zero.
Once the aforesaid impairment loss of assets is recognized, the part whose value can be recovered shall not be turned
back in subsequent periods.
31 Long-term deferred expenses
Long-term deferred expenses refer to expenses that have been paid but their benefit period is more than one year
(excluding one year). Long-term deferred expenses will be amortized in the benefit periods. If one long-term deferred
expense can't benefit the Company in the subsequent periods, the remaining balance of the long-term deferred
expense shall be recognized as expense in profit or loss for the current period.
Long-term deferred expenses are amortized on an average basis using the straight-line method over the following
years:
Category Amortization period (years)
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Renovation costs 2 to 5 years
32 Contract liabilities
Contractual liabilities reflect obligations to transfer goods to customers for consideration received or receivable. If the
customer has paid the contract consideration or obtained the right to unconditionally receive the contract
consideration before transferring the goods to the customer, the contract liability shall be recognized according to the
amount received or receivable at the earlier date of the actual payment made by the customer and the amount due and
payable. Contract assets and liabilities under the same contract shall be shown on a net basis, and those under
different contracts shall not be set off.
33 Employee benefits
Employee benefits refer to all forms of consideration or compensation given by the Company in exchange for service
rendered by employees or for the termination of employment relationship. Employee benefits include short-term
employee benefits, post-employment benefits, termination benefits and other long-term employee benefits. The
benefits provided by the company to employees’ spouses, children, dependents, survivors of deceased employees and
other beneficiaries are also considered as employee benefits.
33.1 Short-time employee benefits
Short-term employee benefits refer to the employee compensation that the company needs to pay in full within 12
months after the end of the annual report period for the employee to provide relevant services.
Short-term employee benefits include employee salary, bonus, allowance and subsidy, employee welfare, medical
insurance premium, industrial injury insurance premium and maternity insurance premium, housing provident fund,
labor union funds and employee education funds, short-term paid absenteeism, short-term profit sharing plan, non-
monetary welfare and other short-term remuneration.
In the accounting period in which employees have rendered services, the Company recognizes the short-term
employee benefits as liability, and charges to profit or loss for the current period or includes in the cost of relevant
assets.
33.2 Post-employment benefits
Post-employment benefits refer to various forms of remuneration and welfare provided by the company for the
service provided by the employee after the employee retires or terminates the labor relationship with the company,
excluding short-term remuneration and dismissal welfare.
The post-employment benefits plan includes a defined contribution plan and a defined benefit plan. Among them, the
set contribution plan refers to the post-employment welfare plan in which the company no longer bears the further
payment obligation after the fixed expenses are deposited in the independent fund. Defined benefit plans refer to
post-employment benefit plans other than defined contribution plans.
Defined contribution plan including basic endowment insurance, unemployment insurance, etc. During the accounting
period when the employee provides services, the amount payable calculated according to the defined contribution plan
is recognized as a liability and recorded into the profit or loss for the current period or the cost of related assets.
At the end of the reporting period, the employee compensation costs arising from the defined benefit plans are
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recognized as the following components:
(a) Service cost, including current service cost, past service cost and settlement gain or loss.
(b) Net interest on defined benefit plan net liabilities or net assets, including interest income on plan assets, interest
expense on defined benefit plan obligations, and interest affected by asset caps.
(c) Recalculate changes in net liabilities or net assets of defined benefit plans
Unless other accounting standards require or allow the cost of employee benefits to be included in the cost of assets,
items (a) and (b) above shall be included in the current profit and loss; Item (c) shall be included in other
comprehensive income and shall not be allowed to be transferred back to profit and loss in subsequent accounting
periods, but such amounts recognized in other comprehensive income may be transferred within the scope of equity.
Under the defined benefit plan, the earliest date on which past service costs are recognized as current expenses is:
(a) When modifying the defined benefit plan.
(b) When the company confirms relevant restructuring expenses or dismissal benefits.
Recognize a settlement gain or loss at the time of defined benefit plan settlement.
33.3 Termination benefits
Termination benefits refer to the compensation given to employees by the company for terminating their labor
relations with employees before the expiration of their labor contracts or for encouraging employees to accept layoffs
voluntarily.
Termination benefits provided by the Company to employees are recognized as an employee benefit liability and
charged to profit or loss for the current period at the earlier of the following dates: (a) The Company cannot
unilaterally withdraw the offer of termination benefits because of an employment termination plan or a curtailment
proposal; and (b) When the Company recognizes costs or expenses related to the restructuring that involves the
payment of termination benefits.
33.4 Other long-term employee benefits
Other long-term employee benefits refers to all employee compensation except short-term compensation, post-
separation benefits and dismissal benefits, including long-term paid absenteeism, long-term disability benefits, long-
term profit sharing plans, etc.
If other long-term employee benefits provided by the Company to the employees meet the conditions for classifying
as a defined contributions plan, those benefits are accounted for in accordance with the above requirements relating to
defined contribution plan. Besides, net obligations or net assets of other long-term employee benefits are recognized
and measured in accordance with the above requirements relating to defined benefits plan. At the end of the reporting
period, the enterprise shall recognize the employee compensation costs generated by other long-term employee
benefits as the following components:
(a) Service cost
(b) Net interest on net liabilities or net assets of other long-term employee benefits
(c) Changes in net liabilities or net assets of other long-term employee benefits are re-measured.
In order to simplify the related accounting treatment, the total net amount of the above items is included in the
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current profit and loss or the cost of the related assets
34 Lease liabilities
Recognize the present value of outstanding lease payments as lease liabilities on the commencement date of the lease
term, except for short-term leases and leases of low value assets. When calculating the present value of the lease
payment, the lease embedded interest rate is used as the discount rate. If the inherent interest rate cannot be
determined, the incremental interest rate of the lessee shall be used as the discount rate. The interest expense of the
lease liability during each period of the lease term shall be calculated according to the fixed periodic interest rate and
recorded into the profit and loss of the current period, except for those recorded into the cost of assets in accordance
with note 4 and 25. Variable lease payments that are not included in the measurement of lease liabilities shall be
included in current profit and loss when actually incurred, unless otherwise stipulated to be included in the cost of
related assets.
Lease term began, in the future when substantial changes occurred in the fixed payment, the guaranteed residual value
is expected to cope with the amount of change, is used to determine the lease payment ratio index or change, call
options, renewal options or terminate the option evaluation results or the actual exercise changes, according to the
changes of the lease the present value of the payments to measure lease liability.
35 Estimated liabilities
Obligations related to contingent events that meet the following conditions at the same time are recognized as
estimated liabilities：
(a) The obligation is a present obligation of the enterprise;
(b) The performance of the obligation is likely to result in the outflow of economic benefits from the enterprise;
(c) The amount of the obligation can be measured reliably.
Estimated liabilities should be initially measured according to the best estimate of the expenditure required to perform
the relevant current obligations.
36 Share-based payment
36.1 Types of share-based payment
Share-based payment is divided into equity-settled share-based payment and cash-settled share-based payment.
Equity-settled share-based payment refers to a transaction in which an enterprise uses shares or other equity
instruments as consideration in order to obtain services. The equity instruments referred to here are the enterprise's
own equity instruments.
Cash-settled share-based payment refers to a transaction in which an enterprise undertakes an obligation to deliver
cash or other assets calculated and determined on the basis of shares or other equity instruments in order to obtain
services.
36.2 Determination method of fair value of equity instruments.
If there is an active market for equity instruments, it shall be determined according to the quotation in the active
market.
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If there is no active market for equity instruments, use valuation techniques, including reference to prices used in
recent market transactions between parties who are familiar with the situation and willing to trade, reference to the
current fair value, discounted cash flow of other financial instruments that are substantially the same. It is determined
by methods such as cash method and option pricing model.
36.3 The basis for confirming the best estimate of vested equity instruments.
On each balance sheet date, according to the latest follow-up information such as the change in the number of
exercisable people and the completion of performance indicators, the number of stock options that are expected to be
exercised is revised, and the expenses to be apportioned in each period are confirmed on this basis. For an option cost
spanning multiple accounting periods, it can generally be apportioned according to the proportion of the waiting
period length of the option to the entire waiting period length in a certain accounting period.
36.4 Accounting treatment related to implementation, modification and termination of share-based payment plan
36.4.1 The equity-settled share-based payment that is exercisable immediately after the grant in exchange for employee
services shall be included in the relevant costs or expenses according to the fair value of the equity instruments on the
grant date, and the capital reserve shall be increased accordingly.
Equity-settled share-based payment that can be exercised in exchange for employee services after the completion of
the service during the waiting period or when the specified performance conditions are met, on each balance sheet
date during the waiting period, the best estimate of the number of exercisable equity instruments is Based on the fair
value of the equity instruments on the grant date, the services obtained in the current period are included in the
relevant costs or expenses and capital reserves.
On the balance sheet date, if the subsequent information indicates that the number of exercisable equity instruments is
different from the previous estimate, adjustments shall be made and adjusted to the actual number of exercisable
equity instruments on the exercise date.
For equity-settled share-based payments, no adjustments will be made to the confirmed costs and total owner's equity
after the vesting date. On the exercise date, the share capital and share premium will be confirmed according to the
exercise situation, and the capital reserves (other capital reserves) confirmed during the waiting period will be carried
forward.
For the granted equity instruments such as options in an active market, the fair value shall be determined according to
the quotation in the active market. For granted options and other equity instruments that do not have an active market,
the option pricing model should be used to determine their fair value, and the option pricing model selected should at
least consider the following factors:
a) The exercise price of the option;
b) The validity period of the option;
c) The current price of the underlying shares;
d) Estimated stock price volatility;
e) Estimated dividends on the shares;
f) The risk-free interest rate during the life of the option.
36.4.2 The cash-settled share-based payment that can be exercised immediately after the grant shall be included in the
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relevant costs or expenses at the fair value of the liabilities assumed by the enterprise on the grant date, and the
liabilities shall be increased accordingly.
For the cash-settled share-based payment that can only be exercised after completing the services during the waiting
period or meeting the specified performance conditions, on each balance sheet date during the waiting period, on the
basis of the best estimate of the vesting situation, the liability shall be borne by the enterprise according to the the fair
value amount of the service obtained in the current period is included in the cost or expense and the corresponding
liability.
On each balance sheet date and settlement date before the settlement of the relevant liabilities, the fair value of the
liabilities is re-measured, and the changes are included in the current profit and loss.
37 Revenues
Accounting policies used for revenue recognition and measurement.
37.1 Principles of revenue recognition
When the contract with the customer meets the following conditions at the same time, the revenue is recognized
when the customer obtains the control of the relevant commodity:
(a) The parties to the contract have approved the contract and promised to perform their respective obligations;
(b) The contract clarifies the rights and obligations of the parties to the contract in relation to the transferred goods or
the provision of labor services;
(c) The contract has clear payment terms related to the transferred goods;
(d) The contract has commercial substance, that is, the performance of the contract will change the risk, time
distribution or amount of future cash flows of the Group;
(e) The consideration entitled to the transfer of goods to the customer is likely to be recovered.
Evaluate the contract on the contract inception date, identify each individual performance obligation contained in the
contract, and allocate the transaction price to each individual performance obligation according to the relative
proportion of the stand-alone selling price of the commodities promised by each individual performance obligation.
In determining the transaction price, the influence of factors such as variable consideration, significant financing
components in the contract, non-cash consideration, and consideration payable to customers are considered. Then
determine whether each individual performance obligation is performed within a certain period of time or at a certain
point in time, and recognize revenue separately when each individual performance obligation is performed.
If one of the following conditions is met, the performance obligation is fulfilled within a certain period of time;
otherwise, the performance obligation is fulfilled at a certain point in time:
a) The customer obtains and consumes the economic benefits brought by the company's performance when the
company performs the contract;
b) The customer can control the commodities under construction in the process of contract performance;
c) The commodities produced by the enterprise during the performance of the contract have irreplaceable uses, and
the enterprise has the right to receive payment for the part of the performance that has been completed so far during
the entire contract period.
For performance obligations performed within a certain period of time, revenue is recognized according to the
progress of performance within that period. The progress of contract performance is determined by the input method
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or output method according to the nature of the transferred goods. When the progress of contract performance
cannot be reasonably determined, and the costs incurred are expected to be compensated, revenue shall be recognized
according to the amount of costs incurred until the progress of contract performance can be reasonably determined.
If one of the above conditions is not met, revenue will be recognized at the transaction price allocated to the single
performance obligation when the customer obtains control over the relevant commodity. The following indications
should be considered when judging whether a customer has acquired control of a commodity:
The enterprise has the current right to receive payment for the product, that is, the customer has the current
payment obligation for the product;
The enterprise has transferred the legal ownership of the product to the customer, that is, the customer already
owns the legal ownership of the product;
The enterprise has transferred the commodity in kind to the customer, that is, the customer has physically
possessed the commodity;
The enterprise has transferred the main risks and rewards of the ownership of the commodity to the customer,
that is, the customer has obtained the main risks and rewards of the ownership of the commodity;
The customer has accepted the product;
Other indications that the customer has obtained control of the goods.
37.2 Methods of revenue recognition used by the Company
(a) Revenue recognized by the Company at a point in time in the control over assets
For the foreign sale of seine fish, the Company uses sales contracts and settlement contracts as the basis, recognizes
the change of ownership based on the date of settlement contracts, and then recognizes revenue accordingly.
TMost of the Company’s fish from long-line fishing is transported back to China for sale. Sales contracts and
settlement contracts are used as the basis. The Company recognizes the change of ownership based on the date of
settlement contracts and then recognizes revenue accordingly.
Processing of aquatic products for domestic sale by the Company: Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd.
issues shipment confirmations according to faxed or email orders from domestic clients. The Company delivers goods
based on shipping notes issued by the sales department and confirmed by the warehouse department. After clients
acknowledge receipt, the Company will recognize revenue.
Processing of aquatic products for foreign sale by the Company: After receiving purchase orders from foreign clients,
the international trade department will issue export shipment confirmations and arrange the storage and transport
department to prepare the goods. The Company will revenue sales revenue based on shipping notes, packing lists,
customs declaration forms, and other export documents.
(b) Revenue recognized by the Company by performance period:
The Company’s revenue from cold storage: After receiving orders from clients and after the goods are put in storage,
the warehouse department will issue warehouse warrants to clients to confirm the specific names, specifications,
pieces, weight, and storage dates. After the warehouse warrants are signed by the warehouse manager and confirmed
by clients, the Company will recognize revenue by calculating the storage fees based on the actual number of storage
days.
38 Government grants
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Government grants are the monetary assets and non-monetary assets received from the government without
consideration to be paid which are not including the capital injected by the government acted as an owner role.
38.1 Judgment basis and accounting treatment method of government grants related to assets
If the government documents explicitly state that the government grants will be used to establish or form long-term
assets, the government grants will be classified as government grants related to assets. Government grants related to
assets are recognized as deferred income. They are amortized in profit or loss for each period over the related assets'
estimated useful period on a systematic basis.
If the relevant assets are sold, transferred, scrapped or damaged before the end of their useful life, the undistributed
balance of relevant deferred income shall be transferred to the profit and loss of the current period of asset disposal.
Government grants related to the Company's routine operation will be recorded in other income based on the nature
of its economic substance and government grants not related to the Company's routine operation will be recorded in
non-operating income or expenses.
38.2 Judgment basis and accounting treatment method of government grants related to income
Except those grants which are classified as government grants related to assets, other government grants are classified
as government grants related to income.
If there is no explicit subsidy object in the government document, the portion related to long-term assets will be
classified as government grants related to assets and the rest portion will be classified as government grants related to
income.
If the grant related to income is a compensation for related expenses or losses to be incurred in subsequent periods,
the grant is recognized as deferred income, and amortized in profit or loss over the periods in which the related costs
are recognized. If the grant related to income is a compensation for related expenses or losses already incurred, the
grant is recognized directly in profit or loss for the current period.
Government grants related to the Company's routine operation will be recorded in other income based on the nature
of its economic substance and government grants not related to the Company's routine operation will be recorded in
non-operating income or expenses.
If the company obtains policy-based preferential loan discounts, it shall distinguish two situations when the finance
allocates the discounted funds to the lending bank and the finance directly allocates the discounted funds to the
enterprise:
When a bank receives the discount interest fund from the financial sector and then provides a loan to the Company
with preferential interest rate, the Company accounts for the loan at the actual received amount and related interest
expenses will be calculated based on the principal and the preferential interest rate. When the Company receives the
discount interest fund from the financial sector directly, the discount interest fund will be deducted from related
borrowing cost.
38.3 The recognition timing for government grants
If the government subsidy is a monetary asset, the company will recognize it when it meets the conditions attached to
the government subsidy and is actually received; if the government subsidy is a non-monetary asset, the company
recognizes the government subsidy when it obtains the control right of the non-monetary asset. Among them, non-
monetary assets are measured at fair value; if the fair value cannot be obtained reliably, it is measured at the nominal
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amount.
When the confirmed government grant needs to be returned, if there is a relevant deferred income balance, the book
balance of the relevant deferred income will be offset, and the excess will be included in the current profit and loss; if
there is no relevant deferred income, it will be directly included in the current profit and loss.
39 Deferred tax asset and deferred tax liability
Income tax is accounted for using the balance sheet liability method. Temporary differences arising from the
difference between the carrying amount of an asset or liability (asset or liability not recognized in balance sheet but the
tax base is ascertained by the current tax laws and regulation, the tax base is the temporary difference) and its tax base
are recognized as deferred tax calculating by the effective tax rate in the expected period to receive the asset or
discharge the liability.
On the basis of calculating and determining the current income tax (that is, the income tax payable in the current
period) and the deferred income tax expenses (or gains), the sum of the two is recognized as the income tax expenses
(or gains) in the income statement, but Excludes income tax effects of transactions or events that are directly included
in owners' equity.
On the balance sheet date, review the book value of deferred tax assets. If it is probable that sufficient taxable profits
will not be available in future periods to allow the benefit of the deferred tax asset to be utilized, the carrying amount
of the deferred tax asset is reduced.
40 Leases
A lease is a contract that transfers or acquires the right to control the use of one or more identified assets for a
specified period in exchange for or payment of consideration. At the inception date of a contract, assess whether the
contract is or contains a lease.
40.1 Company as the lessee
The main categories of leased assets are office buildings and cold storage.
40.1.1 Initially measured
On the commencement date of the lease term, the right to use the leased asset during the lease term is recognized as a
right-of-use asset, and the present value of the unpaid lease payments is recognized as a lease liability (except for
short-term leases and leases of low-value assets). When calculating the present value of lease payments, the interest
rate implicit in the lease is used as the discount rate; if the interest rate implicit in the lease cannot be determined, the
incremental borrowing rate of the lessee is used as the discount rate.
40.1.2 Subsequently measured
With reference to the relevant depreciation provisions of "Accounting Standards for Business Enterprises No. 4 -
Fixed Assets", the right-of-use assets are depreciated (see Note IV. 27 "Right-of-use assets"), and it can be reasonably
determined that the ownership of the leased assets will be obtained when the lease term expires. Depreciation is
accrued over the remaining useful life of the leased asset. If it cannot be reasonably determined that the ownership of
the leased asset can be obtained at the expiration of the lease term, depreciation shall be accrued within the shorter of
the lease term and the remaining useful life of the leased asset.
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For lease liabilities, the interest expense in each period of the lease term is calculated at a fixed periodic interest rate,
and is included in the current profit and loss or included in the cost of relevant assets. Variable lease payments that are
not included in the measurement of lease liabilities are included in the current profit and loss or the cost of related
assets when they are actually incurred.
40.1.3 After the lease commencement date, when there is a change in the actual fixed payment amount, a change in
the
estimated payable amount of the guaranteed residual value, a change in the index or ratio used to determine the lease
payment amount, a purchase option, a lease renewal option or a termination option When there is a change in the
assessment result or the actual exercise of the option, the company re-measures the lease liability according to the
present value of the changed lease payments, and adjusts the book value of the right-of-use asset accordingly. If the
book value of the right-of-use asset has been reduced to zero, but the lease liability still needs to be further reduced,
the remaining amount shall be included in the current profit and loss.
40.1.4 Short-term leases and leases of low-value assets
For short-term leases (leases with a term of less than 12 months on the lease commencement date) and leases of low-
value assets, a simplified approach is adopted, and the right to use assets and lease liabilities are not recognized. The
Company recognizes lease payments for operating leases in profit or loss applying a straight-line basis in each period
over the lease term. The Company capitalized the initial direct expenses incurred which are amortizes in profit or loss
over the lease term on the same recognition basis as the lease income.
40.2 Company as lessor
On the lease inception date, based on the substance of the transaction, leases are classified into finance leases and
operating leases. A finance lease is a lease that substantially transfers substantially all the risks and rewards associated
with ownership of the leased asset. Operating leases refer to leases other than finance leases.
40.2.1 Operating lease
The Company recognizes lease payments for operating leases in profit or loss applying a straight-line basis in each
period over the lease term. Variable lease payments related to operating leases that are not included in lease receipts
are included in profit or loss for the current period when they are actually incurred.
40.2.2 Finance lease
On the commencement date of the lease period, the financial lease receivables are recognized and the financial lease
assets are derecognized. The financial lease receivables are initially measured with the net investment in the lease (the
sum of the unguaranteed residual value and the present value of the lease receipts not yet received at the start date of
the lease term, discounted at the interest rate embedded in the lease), and the interest income during the lease period is
calculated and recognized at a fixed periodic interest rate. The variable lease payments obtained that are not included
in the net lease investment measurement are included in the current profit and loss when they are actually incurred.
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40.2.3 The Company’s revenue applicable to the lease standards
The Company’s revenue from vessel leases: Shandong Zhonglu Aquaculture Shipping Co., Ltd. and Habitat
International Corporation lease their vessels by time charter. The Company leases vessels equipped with operating
staff to others for certain periods. During the lease term, the ships are subject to the lessees’ dispatch. Regardless of
whether they run any business using the vessels, the Company charges lease fees to them and bears any fixed costs
incurred (such as staff salaries, maintenance costs, etc.). During the lease term, the fees are settled on a regular basis
between the Company and its clients. The Company recognizes revenue based on the number of lease days as agreed
upon with the clients.
The Company’s property and other lease revenue: After entering into a lease contract with a client, the Company
charges lease fees based on the lease area and the contractual unit price to the lessee and bears any fixed costs (such as
staff salaries, maintenance costs, etc.). During the lease term, the fees are settled on a regular basis between the
Company and the client. The Company recognizes revenue based on the lease period.
41 Other Important Accounting Policies and Accounting Estimations
Production safety expenditures
In November 2022, the Ministry of Finance and the Ministry of Emergency Management issued the Management
Measures for the Withdrawal and Utilization of Production Safety Expenditures in Enterprise (CZ [2022] No. 136),
and it was implemented on, and as of, the date of issue. At the same time, the Management Measures for the
Withdrawal and Utilization of Production Safety Expenditures in Enterprises (CQ [2012] No. 16) was superseded.
Basis and accounting treatment of the withdrawal and utilization of production safety expenditures:
The Company withdraws production safety expenditures for water transportation - general transportation at 1% of the
revenue for the previous year.
42 Changes in Important Accounting Policies and Accounting Estimations
42.1 “Companies’ accounting treatment of the foreign sale of products or byproducts produced before fixed assets
reach the intended use or during research and development” in the Interpretation of ASBE No. 15.
Since January 1, 2022, the Company has started to implement the provision on “companies’ accounting treatment of
the foreign sale of products or byproducts produced before fixed assets reach the intended use or during research and
development” in the Interpretation of ASBE No. 15 issued by the Ministry of Finance. The Company has made
retroactive adjustments to the trial sales that occurred from the beginning of the earliest period of the financial
statements, during which the Company first implemented the provision, to January 1, 2022. This accounting policy
change has no impact on the Company’s financial statements.
42.2 “The judgement of onerous contracts” in the Interpretation of ASBE No. 15.
Since January 1, 2022, the Company has started to implement the provision on “the judgement of onerous contracts”
in the Interpretation of ASBE No. 15 issued by the Ministry of Finance. The Company implemented the provision for
all obligations that had yet to be performed as at January 1, 2022. Based on the cumulative effects, the Company
adjusted the retained earnings as at the beginning of 2022 as well as the amounts of other relevant items in the
financial statements. The information during the comparable period was not adjusted. Implementing this provision
has no impact on the Company’s financial statements as at January 1, 2022.
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42.3 Since November 30, 2022, the Company has started to implement the provision on “the accounting treatment of
income tax effects from the dividends of financial instruments classified as equity instruments by the issuer” in the
Interpretation of ASBE No. 16 issued by the Ministry of Finance.
Since November 30, 2022, the Company has started to implement the provision on “the accounting treatment of
income tax effects from the dividends of financial instruments classified as equity instruments by the issuer” in the
Interpretation of ASBE No. 16 issued by the Ministry of Finance. For the recognized dividends payable of financial
instruments classified as equity instruments that fall within the scope of the provision and occurred between January 1,
2022 and November 30, 2022, the Company made adjustments according to the provision. For the recognized
dividends payable of financial instruments classified as equity instruments that fall within the scope of the provision
and occurred before January 1, 2022 with the relevant financial instruments yet to be derecognized as at January 1,
2022, the Company made retroactive adjustments according to the provision. This accounting policy change has no
impact on the Company’s financial statements.
42.4 Since November 30, 2022, the Company has started to implement the provision on “the accounting treatment of
companies’ change of cash-settled share-based payment to equity-settled share-based payment” in the Interpretation
of ASBE No. 16 issued by the Ministry of Finance.
Since November 30, 2022, the Company has started to implement the provision on “the accounting treatment of
companies’ change of cash-settled share-based payment to equity-settled share-based payment” in the Interpretation
of ASBE No. 16 issued by the Ministry of Finance. For new transactions between January 1, 2022 and November 30,
2022, the Company has made adjustments according to the provision. For transactions that occurred before January 1,
2022, the Company has made adjustments according to the provision by adjusting the retained earnings as at January 1,
2022 as well as the amounts of other relevant items in the financial statements based on the cumulative effects. The
information during the comparable period was not adjusted. This accounting policy change has no impact on the
Company’s financial statements.
43 Significant accounting judgments and estimates
In the process of applying accounting policies, the company needs to make judgments, estimates and assumptions
about the book value of statement items that cannot be accurately measured due to the inherent uncertainty of
operating activities. These judgments, estimates and assumptions are made based on the past historical experience of
the company's management and taking into account other relevant factors. These judgments, estimates and
assumptions affect the reported amounts of revenue, expenses, assets and liabilities and the disclosure of contingent
liabilities at the balance sheet date. However, the actual results caused by the uncertainty of these estimates may differ
from the current estimates of the company's management, resulting in significant adjustments to the carrying amounts
of the assets or liabilities affected in the future.
The company regularly reviews the aforementioned judgments, estimates and assumptions on a going concern basis. If
the change in accounting estimates only affects the current period of the change, the amount of impact will be
recognized in the current period of the change; if it affects both the current period of the change and the future period,
the affected amount shall be confirmed in the current period of the change and the future period.
On the balance sheet date, the important areas where the company needs to make judgments, estimates and
assumptions about the amounts of financial statement items are as follows:
(1) Revenue recognition
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As stated in Note IV.37, “Revenue”, the recognition of revenue involves the following significant accounting
judgments and estimates:
Estimate the recoverability of consideration to which the customer is entitled for the transfer of goods to the
customer:
Enterprises mainly rely on past experience and work to make judgments. These major judgments and changes in
estimates may have an impact on operating income, operating costs, and profit or loss in the current or subsequent
periods of the change, and may have a significant impact.
(2) Significant accounting judgments and estimates related to leases
① Identification of lease
When a company identifies whether a contract is a lease or contains a lease, it needs to assess whether there is an
identified asset and the customer controls the right-of-use the asset for a certain period of time. In assessing, it is
necessary to consider the nature of the asset, substantive substitution rights, and whether the customer is entitled to
substantially all of the economic benefits arising from the use of the asset during that period and is able to direct the
use of the asset.
② Classification of lease
When a company acts as a lessor, it classifies leases as operating leases and finance leases. When classifying,
management needs to make analysis and judgment on whether all risks and rewards related to the ownership of leased
assets have been substantially transferred to the lessee.
③ Lease liabilities
When the company is the lessee, the lease liability is initially measured at the present value of the unpaid lease
payments on the commencement date of the lease term. In measuring the present value of lease payments, the
company estimates the discount rate to use and the lease term of lease contracts for which renewal or termination
options exist. When evaluating the lease term, the company comprehensively considers all relevant facts and
circumstances that bring economic benefits from the exercise of the option by the company, including expected
changes in facts and circumstances from the commencement date of the lease term to the date when the option is
exercised. Different judgments and estimates may affect the recognition of lease liabilities and right-of-use assets, and
will affect profit or loss in subsequent periods.
(3) Impairment of financial instruments
The company uses the expected credit loss model to evaluate the impairment of financial instruments. The application
of the expected credit loss model requires major judgments and estimates, and all reasonable and evidence-based
information, including forward-looking information, must be considered. When making such judgments and estimates,
the company infers the expected changes in the debtor's credit risk based on historical repayment data combined with
economic policies, macroeconomic indicators, industry risks and other factors.
(4) Provision for inventory depreciation
According to the inventory accounting policy, the company measures at the lower of cost and net realizable value. For
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inventories whose cost is higher than net realizable value and obsolete and slow-moving inventory, provision for
inventory depreciation is made. The impairment of inventories to net realizable value is based on an assessment of the
marketability of inventories and their net realisable value. Identifying the impairment of inventories requires
management to make judgments and estimates on the basis of obtaining conclusive evidence and considering factors
such as the purpose of holding inventories and the impact of events after the balance sheet date. The difference
between the actual result and the original estimate will affect the book value of inventories and the accrual or reversal
of the provision for impairment of inventories in the period in which the estimate is changed.
(5) Provision for impairment of long-term assets
On the balance sheet date, the company judges whether there are signs of possible impairment of non-current assets
other than financial assets. For intangible assets with indefinite useful lives, in addition to the annual impairment test,
when there is an indication of impairment, the impairment test is also performed. Other non-current assets other than
financial assets shall be tested for impairment when there is an indication that their carrying amount is unrecoverable.
When the book value of the asset or asset group is higher than the recoverable amount, that is, the higher of the net
amount after the fair value minus disposal costs and the present value of the expected future cash flow, it indicates
that an impairment has occurred.
The net amount after the fair value minus disposal costs is determined by reference to the sale agreement price or
observable market price of similar assets in an arm's length transaction, minus the incremental cost that can be directly
attributable to the disposal of the asset.
When estimating the present value of future cash flows, it is necessary to make significant judgments on the output,
selling price, relevant operating costs and the discount rate used in calculating the present value of the asset (or asset
group). When estimating the recoverable amount, the company will use all relevant information that can be obtained,
including the forecast of production, selling price and related operating costs based on reasonable and supportable
assumptions.
(6) Depreciation and amortization
After considering the residual value of investment real estate, fixed assets and intangible assets, the company accrues
depreciation and amortization on a straight-line basis within their useful lives. The company periodically reviews the
useful life to determine the amount of depreciation and amortization that will be charged to each reporting period.
The useful life is determined by the company based on past experience with similar assets combined with expected
technological updates. Depreciation and amortization expense is adjusted in future periods if there are material
changes from previous estimates.
(7) Deferred tax assets
To the extent that it is probable that there will be sufficient taxable profits to offset the losses, the company
recognizes deferred tax assets for all unused tax losses. This requires the management of the company to use a lot of
judgment to estimate the time and amount of future taxable profits, and combine tax planning strategies to determine
the amount of deferred tax assets that should be recognized.
(8) Income tax
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In the normal business activities of the company, there are certain uncertainties in the final tax treatment and
calculation of some transactions. Whether some items can be listed as disbursements before tax requires the approval
of the tax authorities. If there is a difference between the final determination result of these tax matters and the
initially estimated amount, the difference will have an impact on the current income tax and deferred income tax
during the final determination period.
(9) Internal retirement benefits and supplementary retirement benefits
The company's internal retirement benefits and supplementary retirement benefits expenses and liabilities are
determined based on various assumptions. These assumptions include discount rate, growth rate of average medical
expenses, growth rate of subsidies for internal retirees and retirees and other factors. Differences between actual
results and assumptions will be recognized and charged to current year expenses as soon as they occur. Although the
management believes that reasonable assumptions have been adopted, changes in actual experience and assumptions
will still affect the company's internal retirement benefits and supplementary retirement benefits expenses and
liabilities.
(10) Other major accounting policies, accounting estimates and methods of preparing financial statements
The company shall determine the operating divisions based on the internal organizational structure, management
requirements and internal reporting system, and shall determine the reporting divisions based on the operating
divisions.
① This component can generate income and expenses in daily activities;
② The enterprise management can regularly evaluate the operating results of this component to decide to allocate
resources to it and evaluate its performance;
③ The enterprise can obtain the financial status, operating results and cash flow of this component of accounting
information.
VI. Taxes
1. Main taxes categories and tax rates
Tax category Tax basis Tax rate
Value added tax Output tax deducted input tax that can be credited 13%，9%、6%、5%、Tax exemption
against the output tax
Urban maintenance and construction Turnover tax payable 7%
tax
Enterprise income tax Taxable income Tax exemption、25%、8%
Income tax rate of taxpayers adopting different income tax rate
Name of tax enterprise Tax rate of income tax
Shandong Zhonglu Oceanic Fisheries Co., Ltd. Ocean fisheries part is tax exemption; housing lease part is
25%.
Shandong zhonglu Haiyan Oceanic Fisheries Co., Ltd. tax exemption
AFRICA STAR FISHERIES LIMITED Export sales part is 8%, domestic sales part is 25%.
HABITAT INTERNATIONAL CORPORATION tax exemption
LAIF FISHERIES CO.LTD 25%
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Name of tax enterprise Tax rate of income tax
ZHONG GHA FOODS COMP ANY LIMITED 25%
Shandong Zhonglu Oceanic Fisheries Transportation Co., Ltd. 25%
Shandong zhonglu ocean refrigeration co. LTD Aquatic products processing part is tax exemption;
refrigeration part is 25%.
Shandong Zhonglu Oceanic (Yantai) Food Co. Aquatic products processing part is tax exemption;
refrigeration part is 25%.
Sino-Ocean (Qingdao) Industrial Investment Development Co., Ltd. 25%
2. Tax Preferences and Approval Documents
2.1 Value-added tax preference
In accordance with Item 1 of Article 15 of the Provisional Regulations of the People’s Republic of China on Value-
Added Tax, Item 1 of Article 35 of the Implementation Rules of the Provisional Regulations of the People’s Republic
of China on Value-Added Tax, and the notice of the Ministry of Finance and the State Taxation Administration on
issuing the Notes to the Scope of Taxation for Agricultural Products through CSZ [1995] No. 52, the sales revenue of
the Company and its subsidiaries from long-range fishing falls within the scope of the aquaculture industry as defined
in the foregoing provisions, and hence, it is entitled to the value-added tax preference.
In accordance with the provisions of the Notice on the Comprehensive Roll-out of Business Tax to Value Added Tax
Transformation Pilot Program (No. 36 of 2016), the value-added tax is exempt for the direct or indirect international
freight forwarding services provided by taxpayers. Shandong Zhonglu Aquaculture Shipping Co., Ltd., a subsidiary of
the Company, is exempt from the value-added tax for the relevant sales revenue it has gained.
2.2 Income tax preference
In accordance with relevant provisions of the Enterprise Income Tax Law of the People’s Republic of China (Order
No. 63 of the President of the People’s Republic of China), the Implementation Rules of the Enterprise Income Tax
Law of the People’s Republic of China (Order No. 512 of the State Council of the People’s Republic of China), the
Notice of the Ministry of Finance and the State Taxation Administration on Issuing the Primary Processing Scope of
Agricultural Products Entitled to Enterprise Income Tax Preference Policies (Trial) (CS [2008] No. 149), the
Supplementary Notice of the Ministry of Finance and the State Taxation Administration on the Relevant Primary
Processing Scope of Agricultural Products Entitled to Enterprise Income Tax Preference Policies (CS [2011] No. 26)
and the Announcement of the State Taxation Administration on Issues Concerning the Enterprise Income Tax
Preference for the Implementation of Farming, Forestry, Husbandry, and Fishery Projects (Announcement No. 48 of
2011 of the State Taxation Administration), the processing fees charged by the Company for its primary processing of
agricultural products and authorized primary processing of agricultural products can be treated as tax-exempt items
for the primary processing of agricultural products. The income gained by the Company from its long-range fishing
and primary processing of agricultural products is exempt from the enterprise income tax. Other income gained by the
company than the income from its long-range fishing and primary processing of agricultural products will be subject
to the enterprise income tax at a tax rate of 25%.
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VII. Notes to consolidated financial statement items
1．Monetary funds
Unit:RMB
Item Closing balance Closing balance Opening balance
2,757,074.69 2,325,815.67
Cash on hand
173,825,159.02 224,938,526.64
Bank deposit
176,582,233.71 227,264,342.31
Total
Including: total amount of funds
27,155,822.08 39,621,432.70
deposited overseas
2．Accounts receivable
(1) Classified disclosure of accounts receivable
Unit:RMB
Closing balance Closing balance Opening balance
Categor Book balance Book balance
Bad debt provision Book Bad debt provision Book
y
Proporti Accrual value Proporti Accrual value
Amount Amount Amount Amount
on ratio on ratio
Amon
g them:
Account
s
receivab
le
59,293,7 9,644,68 49,649,0 67,429,3 9,595,63 57,833,6
accrued 100.00% 16.27% 100.00% 14.23%
03.62 1.84 21.78 06.19 4.36 71.83
for bad
debts by
combina
tion
Includ
ing:
59,293,7 9,644,68 49,649,0 67,429,3 9,595,63 57,833,6
Total 100.00% 16.27% 100.00% 14.23%
03.62 1.84 21.78 06.19 4.36 71.83
Accrued bad debt provisions by combination： 9,644,681.84
Unit:RMB
Name Closing balance
Accrual ratio
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Book balance Bad debt provision
Accrued bad debt provisions
59,293,703.62 9,644,681.84 16.27%
by combination
Total 59,293,703.62 9,644,681.84
If the bad debt provision of accounts receivable is made based on the general model of expected credit losses, please refer to the
disclosure methods of other accounts receivable to disclose the relevant information of bad debts provision:
Applicable Not applicable
Disclosure by aging
Unit:RMB
Closing balance
Aging
51,958,477.63
Within 1 year (included)
1-2 years 46,755.57
2-3 years 764,078.18
Over 3 years 6,524,392.24
4-5 years 6,524,392.24
Total 59,293,703.62
(2) Bad debt provisions accrued, recovered or reversed in the current period
Accrual for bad debt provisions in the current period:
Unit:RMB
Opening Change amount of current period
Closing balance
balance Recovery or
Category Accrual Write off Others
reversal
Accrued bad
debt provisions 9,595,634.36 708,094.38 659,046.90 9,644,681.84
by combination
Total 9,595,634.36 708,094.38 659,046.90 9,644,681.84
(3) Accounts receivable of the top five closing balance collected by the debtor
Unit:RMB
Proportion to the total closing
Closing balance
Name of entity balance of accounts Closing balance of bad debt
accounts receivable
receivable provisions
W.E.C.F. CO..LTD. 26,269,235.50 44.30% 1,313,461.78
PANDA CO.LTD 3,600,962.12 6.07% 3,600,962.12
Fengqun Aquatic Products
3,293,677.74 5.55% 164,683.89
Co., Ltd
Shenzhen Shenzhiyang 2,989,730.41 5.04% 149,486.52
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Trading Co., Ltd
Chenghong Refrigeration Co.,
2,758,755.13 4.65% 137,937.76
Ltd
Total 38,912,360.90 65.61%
3．Prepayments
(1) Prepayments presented by aging
Unit:RMB
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 32,703,670.91 96.83% 25,486,029.47 94.88%
1-2 years 1,070,235.46 3.17% 1,374,021.19 5.12%
Total 33,773,906.37 26,860,050.66
(2) Prepayments of the top five closing balance collected by prepayment object
Name of entity Closing balance Proportion to the total closing balance of
prepayments
China Overseas Fisheries Association 9,421,302.28 27.94%
KTI COMPANY LIMITED 4,131,645.83 12.25%
PARTIES TO THE NAURU AGREEMENT(PNA FUND) 2,746,933.80 8.15%
KIRIBATI GOVERNMENT NO.1 2,379,774.74 7.06%
TECHNICAL SUPPLY CENTER S.L. 1,900,228.73 5.64%
Total 20,579,885.38 61.04%
4．Other receivables
Unit:RMB
Item Closing balance Opening balance
Other receivables 6,370,630.00 5,562,546.59
Total 6,370,630.00 5,562,546.59
(1) Other receivables
1) Classification of other receivables by nature of payment
Unit:RMB
Nature of payment Closing book balance Opening book balance
Security deposit 165,965.36 605,619.95
Transactions and others 11,284,340.69 9,847,319.45
Bad debt provision -5,079,676.05 -4,890,392.81
Total 6,370,630.00 5,562,546.59
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2) Accrual of bad debt provisions
Unit:RMB
Stage 1 Stage 2 Stage 3
Expected credit loss for Expected credit loss for
Expected credit loss for Total
Bad debt provision the entire duration (no the entire duration
the next 12 months
credit impairment has (credit impairment has
occurred) occurred)
Balance on January 1,
552,110.86 4,338,281.95 4,890,392.81
2023
Balance on January 1,
2023 in current period
Accrual of current
299,815.36 275,900.68
period
Reversal of current
87,425.02 87,425.02
period
Other changes 807.58 807.58
Balance on June 30,
765,308.78 4,338,281.95 5,079,676.05
2023
Changes in book balance with significant changes in loss reserves during the current period
Applicable Not applicable
Disclosure by aging
Unit:RMB
Closing balance
Within 1 year (included) 4,439,212.35
1-2 years 2,069,371.56
2-3 years 349,646.69
Over 3 years 4,592,075.45
4-5 years 4,592,075.45
Total 11,450,306.05
3) Bad debt provisions accrued, recovered or reversed in the current period
Accrual of bad debt provision in current period
Unit:RMB
Opening Change amount in current period
balance Closing balance
Category Recovery or
Opening Accrual Write-off Others Closing balance
reversal
balance
Bad debts of
4,890,392.81 275,900.68 87,425.02 807.58 5,079,676.05
other accounts
receivable
Total 4,890,392.81 275,900.68 87,425.02 807.58 5,079,676.05
97
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
4) Other accounts receivable with the top five closing balance collected by the debtor
Unit:RMB
Proportion to total
Nature of payment Closing balance Closing balance of
Name of entity Aging closing balance of
bad debt provision
other receivables
Shandong State-
Receivable
owned Assets
custody fees 2,250,000.00 Within 1 year 19.65%
Investment
Holdings Co., Ltd
Within 1 year, 1-2
Employee loans
Bak Seong Ho 1,055,050.91 years 9.21% 301,642.29
China Overseas
Fisheries Within 1 year
Security deposit 382,250.00 3.34% 19,112.50
Association
Yuxiang
International Current accounts Within 1 year
360,490.00 3.15% 18,024.50
Enterprise Co., Ltd
Daihatsu
Corporation of Current accounts 288,896.39 Over 5 years 2.52% 288,896.39
Japan
Total 4,336,687.30 37.87% 627,675.68
5．Inventory
Does the company need to comply with disclosure requirements in the real estate industry
No
(1)Category of inventories
Unit:RMB
Closing balance Opening balance
Inventory Inventory
falling price falling price
reserve or reserve or
Item contract contract
Book balance Book value Book balance Book value
performance performance
cost cost
impairment impairment
provision provision
Raw material 200,440,042.43 6,769,784.67 193,670,257.76 161,964,426.73 4,070,413.82 157,894,012.91
Commodities in
359,907,879.25 43,254,574.30 316,653,304.95 315,997,100.12 54,150,416.89 261,846,683.23
stock
Turnover 1,108,985.45 1,108,985.45 1,109,413.83 1,109,413.83
98
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materials
Contract
performance 2,547,708.58 2,547,708.58 3,416,444.22 3,416,444.22
cost
Sent
5,304,761.22 4,041,291.15 1,263,470.07
commodities
Low value
451,904.92 451,904.92 595,249.07 595,249.07
consumables
Total 564,456,520.63 50,024,358.97 514,432,161.66 488,387,395.19 62,262,121.86 426,125,273.33
(2)Inventory falling price reserves and contract performance cost impairment provisions
Unit:RMB
Opening Increased amount in the current Decreased amount in the current
balance period period Closing
Item
Opening Reversal or balance
Accrual Others Others
balance resale
Raw materials 4,070,413.82 2,699,370.85 6,769,784.67
Commodities in
54,150,416.89 10,895,842.59 43,254,574.30
stock
Sent
4,041,291.15 4,041,291.15
commodities
Total 62,262,121.86 2,699,370.85 14,937,133.74 50,024,358.97
6．Other current assets
Unit:RMB
Item Closing balance Opening balance
Input tax amount to be deducted for
8,507,530.94 10,392,999.68
value-added tax
Prepaid income tax 103,110.94 374,592.16
Prepaid other taxes 87,620.34 23,854.27
Total 8,698,262.22 10,791,446.11
7．Long-term equity investment
Unit:RMB
Increase/decrease in current period
Investm
ent Declari Closing
Openin profit Other ng the Accrual balance
Closing
g Additio Reduci and loss compre distribu of of
Investe Other balance
balance nal ng recogni hensive tion of impair impair
d entity equity Others (book
(book investm investm zed income cash ment ment
changes value)
value) ent ent under adjustm dividen provisi provisi
the ents ds or on on
equity profits
method
I.Joint venture
II.Associated enterprise
99
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Jinan
Qinzhe
n Food -
1,983,9 1,730,1
Technol 253,775
23.48 48.44
ogy .04
Co.,
Ltd
-
Subtota 1,983,9 1,730,1
253,775
l 23.48 48.44
.04
-
1,983,9 1,730,1
253,775
Total 23.48 48.44
.04
8．Investment real estate
(1)Investment real estate using cost measurement model
Applicable Not applicable
Unit:RMB
Construction in
Item House and building Land use right Total
progress
I. Original book value
1.Opening balance 51,308,578.35 51,308,578.35
2.Increased
amount in current
period Increased
amount in the current
period
(1)Outsourcing
(2)Transferred from
inventory, fixed assets,
and construction in
progress
3) Increase in business
merger
3.Current decrease
amount
(1)Disposal
(2) Other transfers out
4.Closing balance 51,308,578.35 51,308,578.35
II.Accumulated
depreciation and
amortization
1.Opening balance 21,639,210.22 21,639,210.22
2.Increased amount in
current period 663,038.34 663,038.34
Increased amount in
100
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
the current period
(1)Accrual or
663,038.34 663,038.34
amortization
3.Current decrease
amount
(1)Disposal
(2)Other transfers out
4.Closing balance 22,302,248.56 22,302,248.56
III. Impairment
provision
1.Opening balance 886,512.06 886,512.06
2.Increased amount in
the current period
(1) Accrual
3.Current decrease
amount
(1)Disposal
(2)Other transfers out
4.Closing balance 886,512.06 886,512.06
Book value
1.Closing book value 28,119,817.73 28,119,817.73
2.Opening book value 28,782,856.07 28,782,856.07
(2)Investment real estate using fair value measurement model
Applicable Not applicable
(3)Investment real estate without obtaining property ownership certificate
Unit:RMB
Reason for not completing the property
Item Book value
rights certificate
Office building 28,047,820.36 See Notes
Other notes
Note: According to the "Debt Repayment Opinion" signed between our company and Shandong Provincial Aquatic Products
Group Corporation in April 2006, as well as the "Civil Ruling " (2005) LZZ No. 1299 of the People's Court of Lixia District, Jinan
City, Shandong Provincial Aquatic Products Group Corporation will offset the debt owed by its office complex building and office
supplies located at No. 43, Heping Road, Lixia District, Jinan City to Shandong Zhonglu Oceanic Fisheries Co., Ltd, the original
book value of the confirmed office complex building is 54223132.40RMB, and the book value is 31807244.79 RMB(including the
self use part included in fixed assets and the rental part included in investment real estate). The land used for this property is an
allocated land, and the property ownership certificate has not yet been obtained.
101
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9． Fixed assets
Unit:RMB
Item Closing balance Opening balance
Fixed assets 1,046,244,239.75 630,970,963.32
Total 1,046,244,239.75 630,970,963.32
(1) Fixed assets
Unit:RMB
Furniture and
Houses and Machines and Transportation
Item Ships and nets office Total
buildings equipment equipment
equipment
I.Original book
value:
1.Opening 1,022,319,382.
196,047,378.12 741,147,928.30 63,509,105.74 9,548,435.79 12,066,534.30
balance 25
1．Increased
amount in the 38,619.00 454,927,968.42 67,978.19 286,761.26 159,433.79 455,480,760.66
current period
(1)Purchase 18,134,668.22 62,389.38 131,499.03 131,747.26 18,460,303.89
(2)Transferred
from
421,643,953.45 421,643,953.45
construction in
progress
(3)Increase in
business
merger
Impact of
exchange rate 38,619.00 15,149,346.75 5,588.81 155,262.23 27,686.53 15,376,503.32
fluctuations
3. Current
decrease 18,260.22 18,260.22
amount
(1)Disposal or
18,260.22 18,260.22
scrapping
2．Closing 1,196,075,896. 1,477,781,882.
196,085,997.12 63,577,083.93 9,835,197.05 12,207,707.87
balance 72 69
II.Accumulated
depreciation
1.Opening
46,512,265.13 295,149,632.28 32,577,597.44 7,770,183.81 9,181,166.77 391,190,845.43
balance
2.Increased
amount in 2,896,423.07 34,560,488.17 1,854,568.15 566,114.27 327,176.06 40,204,769.72
current period
1) Accrual 2,888,144.03 32,378,908.80 1,851,462.12 424,662.45 306,494.45 37,849,671.85
Impact of
exchange rate 8,279.04 2,181,579.37 3,106.03 141,451.82 20,681.61 2,355,097.87
fluctuations
102
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3.Current
decrease 15,545.71 15,545.71
amount
(1)Disposal or
15,545.71 15,545.71
scrapping
4.Closing
49,408,688.20 329,710,120.45 34,432,165.59 8,336,298.08 9,492,797.12 431,380,069.44
balance
III.Impairment
provision
1.Opening
157,573.50 157,573.50
balance
2.Increased
amount in
current period
(1)Accrual
3.Current
decrease
amount
(1)Disposal or
scrapping
4.Closing
157,573.50 157,573.50
balance
IV. Book value
1.Closing book 1,046,244,239.
146,677,308.92 866,208,202.77 29,144,918.34 1,498,898.97 2,714,910.75
value 75
2.Opening book
149,535,112.99 445,840,722.52 30,931,508.30 1,778,251.98 2,885,367.53 630,970,963.32
value
(2)Temporarily idle fixed assets
Unit:RMB
Original book Accumulated Impairment
Item Book value 备注
value depreciation provision
Refrigerating
2,179,020.00 1,961,118.00 217,902.00
Equipment
(3)Fixed assets without obtaining property ownership certificate
Unit:RMB
Reason for not obtaining the property
Item Book value
rights certificate
Houses and buildings 1,572,595.25 See the notes
Other notes
103
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Note: According to the "Debt Repayment Opinion" signed between our company and Shandong Provincial Aquatic Products
Group Corporation in April 2006, as well as the "Civil Ruling " (2005) LZZ No. 1299 of the People's Court of Lixia District, Jinan
City, Shandong Provincial Aquatic Products Group Corporation will offset the debt owed with its office complex building and
office supplies located at No. 43, Heping Road, Lixia District, Jinan City to Shandong Zhonglu Oceanic Fisheries Co., Ltd, the
original book value of the confirmed office complex building is 54223132.40 yuan, and the book value is 31807244.79 yuan
(including the self use part included in fixed assets and the rental part included in investment real estate). The land used for this
property is an allocated land, and the property ownership certificate has not yet been obtained.
10．Construction in progress
Unit:RMB
Item Closing balance Opening balance
Construction in progress 51,354,770.09 344,727,296.32
Total 51,354,770.09 344,727,296.32
(1) Construction in progress
Unit:RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Tailong 7 seine
169,190,918.22 169,190,918.22
boat
Tailong 9 seine
161,578,418.21 161,578,418.21
boat
Two newly
15,566,963.14 15,566,963.14
built trawlers
Renovation of
Tuna 993,784.17 993,784.17
Exhibition Hall
Phase I of
Zhonglu
Marine
34,794,022.78 34,794,022.78 13,957,959.89 13,957,959.89
Innovation
Industrial Park
Project
Total 51,354,770.09 51,354,770.09 344,727,296.32 344,727,296.32
(2)Changes in important ongoing construction projects for the current period
Unit:RMB
Increas Amou Propor Accum Amon Curren
Other
ed nt tion of ulated g t
decrea
Budget Openi amoun transfe Closin accum Project amoun them: interes Source
Name ses in
amoun ng t in rred to g ulated progre t of Curren t of
of item the
t balanc current fixed balanc project ss interes t capital funds
current
e period assets e invest t interes ization
period
in the ment capital t rate
104
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current to ization capital
period budget ization
amoun
t
Tailon
207,00 169,19 22,794 191,98
g7 92.75 4,337, 1,020,
0,000. 0,918. ,309.8 5,228. 100% 4.00% other
seine % 396.45 133.16
00 22 3 05
boat
Tailon
207,00 161,57 22,796 184,37
g9 89.07 4,337, 1,020,
0,000. 8,418. ,793.2 5,211. 100% 4.00% other
seine % 396.45 133.17
00 21 8 49
boat
Two
newly 26,000 15,566 15,566
59.87 59.87 77,888 77,888
built ,000.0 ,963.1 ,963.1 4.00% other
% % .33 .33
trawler 0 4 4
s
Renov
ation
of
2,038, 993,78 993,78 48.74 48.74
Tuna other
899.00 4.17 4.17 % %
Exhibi
tion
Hall
Phase I
of
Zhongl
u
Marine 90,000 13,957 20,836 34,794
38.66 38.66 3,630, 2,641,
Innova ,000.0 ,959.8 ,062.8 ,022.7 3.50% other
% % 666.67 333.34
tion 0 9 9 8
Industr
ial
Park
Project
532,03 344,72 82,987 376,36 51,354 12,383
4,759,
Total 8,899. 7,296. ,913.3 0,439. ,770.0 ,347.9
488.00
00 32 1 54 9 0
11．Use right assets
Unit:RMB
Item Houses and buildings Total
I.Original book value
1.Opening balance 1,809,939.63 1,809,939.63
2.Increased amount in the current period 432,148.58 432,148.58
Exchange rate impact
50,277.47 50,277.47
3.Current decrease amount
4.Closing balance 2,242,088.21 2,242,088.21
II.Accumulated depreciation 572,806.67 572,806.67
1.Opening balance 1,399,893.66 1,399,893.66
2. Increased amount in the current period 490,242.24 490,242.25
105
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(1)Accrual 451,178.11 451,178.11
Exchange rate impact 39,064.13 39,064.14
3.Current decrease amount
(1)Disposal
4.Closing balance 1,890,135.90 1,890,135.91
III.Impairment provision
1.Opening balance
2.Increased amount in the current period
(1)Accrual
3.Current decrease amount
(1)Disposal
IV.Book value
1.Closing book value
351,952.31 351,952.30
2.Opening book value 410,045.97 410,045.97
12．12.Intangible assets
(1)Intangible assets
Unit:RMB
Non-patent
Item Land use right Patent right Computer software Total
technology
I.Original book
value
1.Opening balance 69,409,842.26 2,330,603.07 71,740,445.33
2.Increased
amount in current
period
(1) Purchase
(2)Internal R&D
(3)Increase in
business merger
3.Current decrease
amount
(1)Disposal
4.Closing balance 69,409,842.26 2,330,603.07 71,740,445.33
I. Accumulated
106
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amortization
1.Opening balance 7,420,487.56 1,692,253.73 9,112,741.29
2.Increased
amount in current 714,486.24 126,346.92 840,833.16
period
(1)Accrual 714,486.24 126,346.92 840,833.16
3.Current decrease
amount
(1)Disposal
4.Closing balance 8,134,973.80 1,818,600.65 9,953,574.45
III.Impairment
provision
1.Opening balance
Increased amount
in current period
(1)Accrual
3.Current decrease
amount
(1)Disposal
4.Closing balance
Book value
1.Closing book
61,274,868.46 512,002.42 61,786,870.88
value
2.Opening book
61,989,354.70 638,349.34 62,627,704.04
value
13．Long-term deferred expenses
Unit:RMB
Increased amount Amortized amount Other decreased
Item Opening balance Closing balance
in current period in current period amount
Decoration
79,090.36 9,886.32 69,204.04
expense for offices
Total 79,090.36 9,886.32 69,204.04
14．Deferred income tax assets/deferred income tax liabilities
(1)Deferred income tax assets not offset
Unit:RMB
Closing balance Opening balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
difference difference
107
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Asset impairment
provision
49,815.65 223,277.78 49,961.39 223,277.78
Tax paid government
subsidies related to
5,163,999.48 1,290,999.87 5,338,621.20 1,334,655.29
assets for deferred
income
Total 5,213,815.13 1,514,277.65 5,388,582.59 1,557,933.07
(2)Deferred income tax liabilities not offset
Unit:RMB
Closing balance Opening balance
Item Taxable temporary
Deferred tax liabilities Taxable temporary
difference Deferred tax liabilities
difference
Accelerated
depreciation of fixed 10,107,817.25 2,526,954.30 10,411,997.44 2,610,499.36
assets
Total 10,107,817.25 2,526,954.30 10,411,997.44 2,610,499.36
(3)Deferred income tax assets or liabilities listed at net amount after offsetting
Unit:RMB
Opening balance of
Deferred income tax Closing balance of Deferred income tax
deferred income tax
assets and liabilities deferred income tax assets and liabilities
Item assets or liabilities after
offset at the end of the assets or liabilities after offset at the end of the
offsetting
period offsetting period
Deferred income tax
1,514,277.65 1,557,933.07
assets
Deferred income tax
liabilities 2,526,954.30 2,610,499.36
(4)Details of unconfirmed deferred income tax assets
Unit:RMB
Item Closing balance Opening balance
Deductible temporary differences - bad
debt provisions 14,724,357.89 13,592,916.05
Deductible temporary differences -
inventory falling price reserves 50,024,358.97 62,262,121.86
Deductible temporary differences -
7,987,245.92
deductible losses
Deductible temporary differences -
impairment provision of construction in 4,077,658.55 4,077,658.55
progress
108
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Total 68,826,375.41 87,919,942.38
15．Other non-current assets
Unit:RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Prepaid land
payment 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00
Advance
payment for
construction in 6,099,449.18 6,099,449.18 10,851,990.71 10,851,990.71
progress and
equipment
Total 8,099,449.18 8,099,449.18 12,851,990.71 12,851,990.71
16．Short-term loans
(1)Category of short-term loans
Unit:RMB
Item Closing balance Opening balance
Mortgage loan 28,029,658.29 10,012,533.29
Guaranteed Loan 19,400,000.00
Credit loans 40,011,611.11 10,011,611.11
Total 87,441,269.40 20,024,144.40
17．Accounts payable
(1) Presentation of accounts payable
Unit:RMB
Item Closing balance Opening balance
Within 1 year (included) 117,778,360.07 129,391,901.74
Over 1 year 8,374,137.27 4,880,402.31
Total 126,152,497.34 134,272,304.05
18．Advance receipts
(1)Presentation of advance receipts
Unit:RMB
Item Closing balance Opening balance
Advance rent collection 1,879,098.03 1,684,961.19
Total 1,879,098.03 1,684,961.19
109
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19．Contract liabilities
Unit:RMB
Item Closing balance Opening balance
Advance payment for goods 56,718,860.93 49,576,606.91
Total 56,718,860.93 49,576,606.91
20．Payroll payable
(1) Presentation of payroll payable
Unit:RMB
Increase in current Decrease in current
Item Opening balance Closing balance
period period
I.Short -term
53,077,921.51 75,878,264.88 83,945,724.28 45,010,462.11
compensation
II.Post employment
benefits - defined 2,026,077.30 6,602,945.93 5,589,316.94 3,039,706.29
contribution plan
III.Dismissal benefits 3,962.00 224,088.00 228,050.00
IV.Other benefits due
8,073.37 8,073.37
within one year
Total 55,116,034.18 82,705,298.81 89,771,164.59 48,050,168.40
(2)Presentation of short-term salary
Unit:RMB
Increase in current Decrease in current
Item Opening balance Closing balance
period period
1.Salaries, bonuses,
allowances, and 51,653,463.36 68,953,421.72 76,942,856.64 43,664,028.44
subsidies
2.Employee welfare
72,168.00 1,365,014.59 1,437,182.59
expenses
3.Social insurance
12,715.32 2,907,593.58 2,917,611.72 2,697.18
premiums
Including: Medical
10,928.96 2,510,251.29 2,521,180.25
insurance premiums
Work injury insurance
1,786.36 352,692.36 354,478.72
premium
4.Housing provident
2,235,417.88 2,235,417.88
fund
5.Trade union funds
and employee 1,339,574.83 416,817.11 412,655.45 1,343,736.49
education funds
Total 53,077,921.51 75,878,264.88 83,945,724.28 45,010,462.11
110
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(3)Presentation of defined contribution plans
Unit:RMB
Increase in current Decrease in current
Item Opening balance Closing balance
period period
1.Basic pension
21,651.20 5,333,819.83 5,355,471.03
insurance
2. Unemployment
947.24 221,871.88 222,819.12
insurance premium
3.Enterprise annuity
2,003,478.86 1,047,254.22 11,026.79 3,039,706.29
payment
Total 2,026,077.30 6,602,945.93 5,589,316.94 3,039,706.29
21．Tax payable
Unit:RMB
Item Closing balance Opening balance
Value added tax 244,635.99 282,208.25
Enterprise income tax 929,272.25 1,541,093.07
Personal income tax 41,218.59 559,650.11
Urban maintenance and construction tax 2,943.78 4,008.32
Property tax 340,194.59 340,194.59
Land use tax 200,210.99 200,210.82
Education surcharges 1,491.37 2,863.10
Other taxes and fees 722,172.08 1,411,448.06
Total 2,482,139.64 4,341,676.32
22．Other payables
Unit:RMB
Item Closing balance Opening balance
Other payables 17,524,810.27 18,326,716.51
Total 17,524,810.27 18,326,716.51
(1)Other payables
1) Presentation of other payables by payment nature
Unit:RMB
Item Closing balance Opening balance
Security deposit 775,595.64 5,965,114.77
Employee expenses 1,594,561.11 716,721.01
Safety production cost 2,808,236.18 1,667,772.64
Others 12,346,417.34 9,977,108.09
Total 17,524,810.27 18,326,716.51
111
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23．Non current liabilities maturing within one year
Unit:RMB
Item Closing balance Opening balance
Long-term loans maturing within one
3,300,000.00 6,502,041.67
year
Total 3,300,000.00 6,502,041.67
24．Other current liabilities
Unit:RMB
Item Closing balance Opening balance
Advance payment output tax 5,813.08 223,557.01
Total 5,813.08 223,557.01
25．Long-term loans
(1)Category of long-term loans
Unit:RMB
Item Closing balance Opening balance
Mortgage loan 47,200,000.00 47,264,244.44
Guaranteed Loan 108,240,000.00 96,093,333.33
Mortgage and guaranteed loan 230,990,361.46 140,200,000.00
Total 386,430,361.46 283,557,577.77
26．Lease liabilities
Unit:RMB
Item Closing balance Opening balance
Rental of office space 186,871.11
Total 186,871.11
27．Long-term employee compensation payable
(1)Long term employee payroll payable
Unit:RMB
Item Closing balance Opening balance
I. Other long-term benefits 551,802.08 616,935.20
Total 551,802.08 616,935.20
28．Deferred income
Unit:RMB
Increase in current Decrease in
Item Opening balance Closing balance Cause
period current period
112
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Government
Government
13,500,315.67 626,668.18 12,873,647.49 subsidies related to
subsidies
assets
Total 13,500,315.67 626,668.18 12,873,647.49
Items involving government subsidies:
Unit:RMB
Amount
Newly Amount Expense
included in
added included in amount for Related to
non-
Liability Opening subsidy other offsetting Other Closing assets/relat
operating
item balance amount in income in cost for changes balance ed to
income for
current the current current income
the current
period period period
period
Special Related to
7,954,109.0 7,435,067.8
constructio 519,041.16 assets
4 8
n fund
Financial
subsidies
5,546,206.6 5,438,579.6 Related to
for 107,627.02
3 1 assets
shipbuildin
g
29．Capital stock
Unit:RMB
Increase/decrease for this change
Opening Conversion Closing
balance Issue of new Stock balance
of provident Others Subtotal
shares dividend
fund into
shares
Total number 266,071,320. 266,071,320.
of shares 00 00
30． Capital reserves
Unit:RMB
Increase in current Decrease in current
Item Opening balance Closing balance
period period
Capital premium (share
189,093,492.79 189,093,492.79
capital premium)
Other capital reserve 106,526,779.23 106,526,779.23
Total 295,620,272.02 295,620,272.02
31．Other comprehensive income
Unit:RMB
Item Opening Amount incurred in current period Current amount incurred Closing
113
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balance Less: balance
Less: Previously
previously included in
included in other
Amount
other comprehen Attributabl
incurred Attributabl
comprehen sive Less: e to
before e to the
sive income, Income tax minority
income tax parent
income and and expense shareholder
in the company
transferred transferred s after tax
current after tax
to profit or to retained
period
loss in the earnings in
current the current
period period
I.Other
compreh
ensive
income -
8,720,992.5 6,789,384.4 1,931,608.1
to be 6,291,344.5 498,039.84
4 2 2
reclassif 8
ied into
profit or
loss
Translation
differences
-
in foreign 8,720,992.5 6,789,384.4 1,931,608.1
6,291,344.5 498,039.84
currency 4 2 2
8
financial
statements
Total of
other -
8,720,992.5 6,789,384.4 1,931,608.1
comprehen 6,291,344.5 498,039.84
4 2 2
sive 8
income
32．Special reserves
Unit:RMB
Increase in current Decrease in current
Item Opening balance Closing balance
period period
Safe production
1,663,748.71 1,360,453.37 303,295.34
expense
Total 1,663,748.71 1,360,453.37 303,295.34
33．Surplus reserves
Unit:RMB
Increase in current Decrease in current
Item Opening balance Closing balance
period period
Statutory surplus
21,908,064.19 21,908,064.19
reserve
Total 21,908,064.19 21,908,064.19
114
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34．Undistributed profits
Unit:RMB
Item Current period Previous period
Undistributed profit at the end of the
409,764,423.32 379,524,911.94
previous period before adjustment
Undistributed profits at the beginning of
409,764,423.32 379,524,911.94
the adjustment period
Plus: Net profit attributable to the owners
of the parent company in the current -10,201,333.02 30,239,511.38
period
Undistributed profit at the end of the
399,563,090.30 409,764,423.32
period
Details of undistributed profits at the beginning of the adjustment period:
1) Due to the retrospective adjustment of the Accounting Standards for Business Enterprises and related new regulations, the
undistributed profits by yuan at the beginning of the period were affected.
2) Due to changes in accounting policies, the undistributed profit by yuan at the beginning of the period was affected.
3) Due to significant accounting error correction, the undistributed profit by yuan at the beginning of the period was affected.
4) Due to changes in the scope of consolidation caused by the same control, the undistributed profit by yuan at the beginning of the
period was affected .
5) The total amount of other adjustments affects on the undistributed profit by yuan at the beginning of the period.
35．Operating income and operating costs
Unit:RMB
Amount incurred in the current period Amount incurred in the previous period
Item
Income Cost Income Cost
Main business 449,292,839.15 435,341,802.68 365,737,998.47 364,824,763.13
Other businesses 4,926,425.05 862,430.51 4,810,996.29 992,975.63
Total 454,219,264.20 436,204,233.19 370,548,994.76 365,817,738.76
Income generated by contract:
(1)Operating income in current period classified by revenue recognition time
Income from product Income from Income from other
Item Income from OEM
sales refrigeration fee businesses
processing
Recognized at a certain point 439,423,679.54 1,287,662.99 3,395,000.15
Recognized within a certain
10,112,921.52
duration
Total 439,423,679.54 1,287,662.99 10,112,921.52 3,395,000.15
(2)Income subject to leasing standards
115
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Item
Ship leasing House leasing and others
Main business 63,548,295.62
Other businesses 2,420,645.59
Total 63,548,295.62 2,420,645.59
36．Taxes and surcharges
Unit:RMB
Item Amount incurred in the current period Amount incurred in the previous period
Consumption tax 65.04
Urban maintenance and construction tax 49,808.79 23,456.65
Education surcharges 21,323.33 10,017.56
Property tax 934,220.78 911,202.45
Land use tax 243,084.06 505,100.21
Vehicle and vessel use tax 12,711.68 1,636.68
Stamp duty 133,456.01 116,889.48
Local education surcharges 14,215.57 6,678.36
Total 1,408,885.26 1,574,981.39
37．Sales expenses
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Employee compensation 905,191.78 953,992.32
Business promotion expenses 520,013.60 238,660.36
Travel expenses 84,708.59 7,817.80
Depreciation expenses 49,215.30 56,918.60
Communication fee 1,139.18 2,700.42
Others 331,539.33 185,259.87
Total 1,891,807.78 1,445,349.37
38．Administrative expenses
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Employee compensation 19,022,687.71 15,642,222.75
Accumulated depreciation and
2,177,428.40 944,275.86
amortization
Travel expenses 832,275.16 830,012.14
Business entertainment expenses 370,266.84 222,761.89
Vehicle cost 471,464.76 445,322.50
Intermediary service fee 60,433.66 164,535.87
Office expenses 342,445.70 219,585.23
Property water and electricity 811,278.58 759,509.61
116
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Depreciation of use rights assets 260,242.55 928,672.60
Others 4,833,640.53 5,482,826.92
Total 29,182,163.89 25,639,725.37
39． R&D expenses
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Employee compensation 354,685.14 293,851.00
Materials 4,599.01 9,626.24
Depreciation 96,697.44
Others 159,494.16 29,066.72
Total 615,475.75 332,543.96
40．Financial expenses
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Interest expenses 4,110,188.21 1,350,577.27
Less: Interest income 908,757.25 179,373.83
Exchange gains and losses -6,865,649.63 -4,218,361.31
Handling fee expenditure 609,479.19 366,973.75
Other expenses 131,678.02 47,903.31
Total -2,923,061.46 -2,632,280.81
41．Other income
Unit:RMB
Sources of other income generation Amount incurred in the current period Amount incurred in previous period
Shipbuilding financial discount 107,627.02 107,627.02
Financial subsidies for special
construction funds in the blue economic 349,243.44 349,243.44
zone
Special funds for cold chain logistics 141,211.80 141,211.80
Refund of individual income tax
21,836.73 22,928.75
procedures
Job stabilization subsidy 4,500.00 590.93
Support subsidy for ammonia
28,585.92 14,292.96
refrigeration medium transformation
Special funds for the development of
767,000.00
deep-sea fisheries
Rewards and subsidies for high-quality
100,000.00
agricultural development policies
Value added tax addition and deduction 8,041.40 52,205.35
Total 1,528,046.31 688,100.25
42．Investment income
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
117
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Long-term equity investment income
-253,775.04
accounted using the equity method
Investment income of trading financial
1,076,034.24
assets during the holding period
Total -253,775.04 1,076,034.24
43．Income from changes in fair value
Unit:RMB
Sources of income from changes in fair
Amount incurred in the current period Amount incurred in previous period
value
Trading financial liabilities -96,000.00
Total -96,000.00
44．Credit impairment loss
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Credit impairment loss on accounts
-85,703.21 369,577.28
receivable
Credit impairment losses on other
-203,681.99 -8,829.93
receivables
Total -289,385.20 360,747.35
45．Asset impairment loss
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
II. Inventory falling price loss and
contract performance cost impairment -2,699,370.85
loss
Total -2,699,370.85
46．Non-operating income
Unit:RMB
Amount included in current
Amount incurred in the Amount incurred in previous
Item non-recurring gains and
current period period
losses
Compensation income 528,820.50 17,073.10 528,820.50
Others 330.00 19,927.00 330.00
Total 529,150.50 37,000.10
47．Non-operating expenses
Unit:RMB
Item Amount incurred in the Amount incurred in previous Amount included in current
118
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current period period non-recurring gains and
losses
Losses on scrapping of fixed
2,714.51 1,337.00 2,714.51
assets
Total 2,714.51 1,337.00 2,714.51
48．Income tax expenses
(1)Income tax expense statement
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Current income tax expense 1,139,000.17 314,456.95
Deferred income tax expense -39,889.64 43,655.43
Total 1,099,110.53 358,112.38
(2)Accounting profit and income tax expense adjustment process
Unit:RMB
Item Amount incurred in current period
Total profit -13,348,289.00
Income tax expenses calculated based on statutory/applicable
-3,337,072.25
tax rates
The impact of adjusting income tax of previous periods 41,915.89
The impact of non-taxable income 1,951,633.38
The impact of deductible losses on unrecognized deferred
income tax assets in the prior periods of use
The impact of deductible temporary differences or deductible
losses on unrecognized deferred income tax assets in the 2,442,633.52
current period
Income tax expenses 1,099,110.53
49．Other comprehensive income
Refer to 31, VII,Sections 10 of the notes for details.
50．Items of cash flow statement
(1)Other cash received related to operating activities
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Financial expenses - interest income 908,757.25 209,168.93
Government subsidies and other non-
1,418,557.36 1,082,566.91
operating income
Current accounts and others 1,523,601.26 10,438,026.46
Total 3,850,915.87 11,729,762.30
119
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(2)Other cash paid related to operating activities
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Cash paid sales expenses 2,482,632.44 7,836,790.46
Cash paid management fees 11,014,487.90 7,463,756.44
Cash paid research and development
101,296.45 4,039.00
expenses
Current accounts and others 3,953,790.26 2,935,295.14
Total 17,552,207.05 18,239,881.04
(3)Other cash paid related to financing activities
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Payment of lease payments 338,909.00 652,967.28
Total 338,909.00 652,967.28
51．Supplementary information to the cash flow statement
(1)Supplementary information to the cash flow statement
Unit:RMB
Supplementary information Amount in current period Amount in previous period
1．Adjusting net profit to cash
flow from operating activities:
Net profit -14,447,399.53 -14,817,049.31
Plus: Asset impairment provision -12,237,762.89 -360,747.35
Depreciation of fixed assets,
depletion of oil and gas assets, and
37,849,671.85 24,984,413.04
depreciation of productive biological
assets
Depreciation of use rights assets 451,178.11 1,104,702.78
Amortization of intangible assets 318,282.00 896,447.27
Amortization of long-term
9,886.32 4,822,591.49
deferred expenses
Loss on disposal of fixed assets,
intangible assets, and other long-term 5,105,581.41
assets (income, using"-")
Loss on scrapping of fixed assets
2,714.51
(income, using "-")
Loss from changes in fair value
96,000.00
(income , using "-")
Financial expenses (income , using "-") 3,298,123.39 -2,632,280.81
Investment losses (income , using "-") 253,775.04 -1,076,034.24
Decrease in deferred income tax assets
43,655.42 43,655.43
(increase, using "-")
Increase in deferred income tax liabilities -83,545.06 -75,190.54
120
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(decrease , using "-")
Decrease in inventory (increase , using "-
-76,069,125.44 -31,159,401.15
")
Decrease in operating receivables
-3,241,578.67 -26,306,042.37
(increase , using "-")
Increase in operating payables
9,386,165.34 -29,344,731.86
(decrease , using "-")
Others
Net cash flow generated from operating
-54,465,959.61 -68,718,086.21
activities
2．Major investment and financing
activities that do not involve cash
receipts and payments:
Debt converted to capital
Convertible corporate bonds maturing
within one year
Fixed assets acquired through financing
lease
3．Net changes in cash and cash
equivalents:
Closing balance of cash 176,582,233.71 212,936,131.11
Less: Opening balance of cash 227,264,342.31 209,649,305.99
Plus: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash equivalents -50,682,108.60 3,286,825.12
(2)Composition of cash and cash equivalents
Unit:RMB
Item Closing balance Opening balance
I. Cash 176,582,233.71 227,264,342.31
Including: cash in hand 2,757,074.69 2,325,815.67
Bank deposits available for payment at
173,825,159.02 224,938,526.64
any time
II. Closing balance of cash and cash
176,582,233.71 227,264,342.31
equivalents
52．Assets with restricted ownership or use rights
Unit:RMB
Item Closing book value Reason for restriction
Fixed assets 474,879,441.40 Mortgage loan
Intangible assets 4,676,999.00 Mortgage loan
Construction in progress 15,566,963.14 Mortgage loan
Total 495,123,403.54
121
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53．Item Foreign currency monetary items
(1)Foreign currency monetary items
Unit:RMB
Closing converted RMB
Item Closing foreign currency
Conversion exchange rate balance
balance
Monetary funds 53,204,512.93
Including: US dollar 5,302,902.94 7.2098 38,232,869.62
Euro 36,158.09 7.8717 284,625.64
Hong Kong dollar
Japanese yen 217,779,217.00 0.0504 10,976,072.54
Cedi 5,603,886.88 0.6560 3,676,149.79
Western France 2,923,979.00 0.0119 34,795.35
Accounts receivable 40,670,939.49
Including: USD 4,813,679.58 7.2098 34,705,667.04
Euro
Hong Kong dollar
Japanese yen 105,592,262.80 0.0504 5,321,850.05
Cedi 980,826.85 0.6560 643,422.41
Long-term loans
Including: USD
Euro
Hong Kong dollar
(2) Explanation of overseas operating entities, including for important overseas operating entities, the
main overseas operating location, recording currency, and selection basis should be disclosed. If there is a
change in recording currency, the reasons should also be disclosed.
Applicable □ Not applicable
Important overseas operating entities Overseas main Recording currency Selection basis
business location
HABITAT INTERNATIONAL Panama USD The economic
CORPORATION Panama environment in which
the business operates
LAIF FISHERIES COMPANY LIMITED Ghana USD The economic
environment in which
the business operates
YAW ADDO FISHERIES COMPANY Ghana USD The economic
LIMITED environment in which
the business operates
122
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ZHONG GHA FOODS COMPANY Ghana USD The economic
LIMITED environment in which
the business operates
AFRICA STAR FISHERIES LIMITED Ghana USD The economic
environment in which
the business operates
54．Government subsidies
(1)Basic information of government subsidies
Unit:RMB
Amount included in current
Kind Amount Reporting items
profit and loss
Refund of individual income
tax procedures 21,836.73 Other income 21,809.13
Job stabilization subsidy
4,500.00 Other income 4,500.00
Special funds for the
development of deep-sea 767,000.00 Other income 767,000.00
fisheries
Rewards and subsidies for
high-quality agricultural 100,000.00 Other income 100,000.00
development policies
VIII. Changes in the Scope of Consolidation
1.Others
The merger scope of the company has not changed in this period.
IX. Equity in other entities
1.Equity in subsidiaries
(1)Composition of enterprise groups
Shareholding proportion
Main operating Place of Method of
Name of Business nature
location registration Indirect acquisition
subsidiary
Shandong
Zhonglu
Qingdao, Qingdao, Establishment
Aquatic Ocean shipping 100.00%
Shandong Shandong by investment
Shipping Co.,
Ltd
123
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Shandong
Zhonglu
Qingdao, Qingdao, Establishment
Haiyan Oceanic Ocean fishing 59.05%
Shandong Shandong by investment
Fisheries Co.,
Ltd
Zhonglu
Oceanic(Qingd
ao) Industrial Food
Qingdao, Qingdao, Establishment
Investment and processing and 66.63% 33.37%
Shandong Shandong by investment
Development refrigeration
Co., Ltd
Shandong
Food
Zhonglu Yantai, Yantai, Establishment
processing and 53.79% 18.67%
Oceanic(Yantai Shandong Shandong by investment
refrigeration
) Food Co., Ltd
HABITAT
INTERNATIO
Establishment
NAL Panama Panama Ocean shipping 100.00%
by investment
CORPORATIO
N
Shandong
Zhonglu
Yantai, Yantai, Warehousing Establishment
Oceanic 100.00%
Shandong Shandong service by investment
Refrigeration
Co., Ltd
LAIF
FISHERIES Establishment
Ghana Ghana Ocean fishing 100.00%
COMPANY by investment
LIMITED
AFRICA
STAR Establishment
Ghana Ghana Ocean fishing 100.00%
FISHERIES by investment
LIMITED
ZHONG
GHA FOODS Establishment
Ghana Ghana Ocean fishing 100.00%
COMPANY by investment
LIMITED
YAW
ADDO
经营租赁
FISHERIES Ghana Ghana Ocean fishing
Operating lease
COMPANY
LIMITED
(2)Important non wholly-owned subsidiaries
Unit:RMB
Profit and loss Dividends declared for
Shareholding Closing balance of
attributable to minority distribution to minority
proportion of minority minority shareholders'
Name of subsidiary shareholders in the shareholders in the
shareholder equity
current period current period
Shandong Zhonglu
Haiyan Oceanic
40.95% -5,767,205.47 163,619,690.31
Fisheries Co., Ltd
124
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Shandong Zhonglu
Oceanic (Yantai) Food 27.54% 1,521,138.96 95,064,493.20
Co., Ltd
Total -4,246,066.51 258,684,183.51
(3)Main financial information of important non-wholly-owned subsidiaries
Unit:RMB
Closing balance Opening balance
Name
of Curren Non- Curren Non-
Non- Total Total Non- Total
subsidi Curren t current Curren Total t current
current of liabiliti current liabiliti
ary t assets liabiliti liabiliti t assets assets liabiliti liabiliti
assets assets es assets es
es es es es
Shand
ong
Zhongl
u
318,86 222,53 541,40 136,40 141,84 284,74 228,52 513,27 98,801 104,34
Haiyan 5,438, 5,546,
8,714. 9,470. 8,185. 9,922. 8,502. 6,514. 7,101. 3,616. ,188.4 7,395.
Oceani 579.61 206.63
59 73 32 42 03 95 55 50 8 11
c
Fisheri
es Co.,
Ltd
Shand
ong
Zhongl
u
389,02 123,07 512,09 156,94 166,91 349,06 126,95 476,01 125,79 10,564 136,35
Oceani 9,962,
1,961. 6,343. 8,304. 9,306. 1,328. 3,247. 5,026. 8,274. 0,070. ,608.4 4,678.
c 022.18
13 26 39 18 36 82 31 13 11 0 51
(Yantai
) Food
Co.,
Ltd
Unit:RMB
Amount incurred in current period
Amount incurred in previous period
Name of Total Cash flow Total Cash flow
subsidiary Operating comprehen of Operating comprehen of
Net profit Net profit
income sive operating income sive operating
income activities income activities
Shandong
Zhonglu
- - - - - -
Haiyan 123,113,71 70,960,103.
14,083,529. 9,366,538.1 7,785,536.3 20,046,540. 14,478,065. 63,483,126.
Oceanic 6.41 41
85 0 8 01 76 67
Fisheries
Co., Ltd
Shandong
Zhonglu
-
Oceanic 242,865,82 5,523,380.4 5,523,380.4 247,788,33 8,755,027.6 8,755,027.6 38,520,754.
11,712,010.
(Yantai) 4.14 1 1 5.98 0 0 41
07
Food Co.,
Ltd
125
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2.Equity in joint venture or associate enterprises
(1)Important joint venture or associate enterprises
Shareholding proportion
Accounting
Name of joint
methods for
venture or Main business
Place of Business nature investments in
associate location Direct Indirect
registration joint ventures
enterprise
or associated
enterprises
Jinan Qinzhen
Jinan, Food Accounted with
Food Jinan, 10.87%
Shandong processing equity method
Technology Shandong
Co., Ltd
Explanation of the difference between the shareholding ratio in a joint venture or associated enterprises and the voting rights ratio:
Basis for holding less than 20% of voting rights but with significant impact, or holding 20% or more of voting
rights but without significant impact:
Our subsidiary Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd. holds a 15.00% stock share in Jinan
Qinzhen Food Technology Co., Ltd. and appoints directors to it, which has a significant impact on its
production and operation.
X.Risks Related to Financial Instruments
Our company's financial assets include accounts receivable and other receivables, while our company's financial
liabilities include accounts payable, other payables, and short-term loans. For a detailed description of various
financial instruments, please refer to the relevant items in Note 6. The company faces various financial
instrument risks in its daily activities, mainly including credit risk, liquidity risk, and market risk. The board of
directors is fully responsible for establishing and supervising the company's risk management structure, as well
as formulating and monitoring the company's risk management policies.
Risk management objectives and policies: The objective of our company in risk management is to achieve an
appropriate balance between risk and return, minimize the negative impact of risk on our company's business
performance, and maximize the interests of shareholders and other equity investors.
1. Credit risks
If the customer or counterparty involved in the financial instrument is unable to fulfill their obligations
under the contract and causes financial losses to the company, it is considered a credit risk. Credit risk mainly
comes from accounts receivable from customers. The book value of accounts receivable, notes receivable, and
other receivables is the company's maximum credit risk for financial assets.
2.Liquidity risk
Liquidity risk refers to the risk of a shortage of funds encountered by the company in fulfilling its obligations
related to financial liabilities. Our company ensures sufficient liquidity to fulfill matured debts under normal
and tight financial conditions, and conducts financing negotiations with financial institutions to maintain a
certain level of standby credit line to reduce liquidity risk.
3.Market risks
126
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Foreign exchange risk
(1) Foreign exchange risk
Foreign exchange risk refers to the risk of fluctuations in the fair value or future cash flows of financial
instruments due to changes in foreign exchange rates. The foreign exchange risk faced by our company mainly
comes from financial assets denominated in US dollars, and the amount of foreign currency financial assets
converted into RMB is listed in the foreign currency monetary item in the notes.
(2)Interest rate risk
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial
instruments due to changes in market interest rates. The interest rate risk faced by our company mainly comes
from long-term bank loans, which is a floating interest rate and has the risk of changes in the RMB benchmark
interest rate.
XI. Related Parties and Related Transactions
1．1.The situation of the parent company of the enterprise
The shareholding
Proportion of
ratio of the parent
Name of parent Place of Registered capital voting rights of the
Business nature company in the
company registration parent company to
company
the company
Investment and
Management,
Asset Management
Shandong State - and Capital
owned Assets Jinan, Shandong Operations, ￥4,500,000,000 47.25% 47.25%
Investment Custody
Holdings Co., Ltd Operations,
Investment
Consulting
The ultimate controlling party of the enterprise is the State owned Assets Supervision and Administration Commission of the
People's Government of Shandong Province.
2．Situation of subsidiaries of the enterprise
The situation of subsidiaries of the enterprise is detailed in Note 9, Equity in Other Entities.
3．Situation of joint ventures and associated enterprises of our company
For important joint ventures or associated enterprises of our company, refer to Note 9, Equity in Joint Arrangements or Associated
Enterprises.
127
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
4．Other related parties
Name of other related parties Relationship between other related parties and our company
Inspur General Software Co., Ltd Controlled by the same parent company
Dezhou Bank Co., Ltd Controlled by the same parent company
Zhongtai Xincheng Asset Management Co., Ltd Controlled by the same parent company
Jinan Qinzhen Food Technology Co., Ltd Associate enterprise
5.Related party transactions
(1) Related party transactions for purchasing and selling goods, providing and receiving labor services
Table of Purchasing Goods/Accepting Labor Services
Unit:RMB
Amount incurred
Content of related Approved Does it exceed the Amount incurred
in current period
Related parties party transaction transaction limit transaction limit in previous period
Jinan Qinzhen
Food Technology Tuna 89,020.41 No 30,080.70
Co., Ltd
(2)Related entrusted management/contracting and entrusted management/outsourcing situation
Table of entrusted management/contracting situation of our company:
Unit:RMB
Confirmed
Name of the Pricing basis
Name of Type of Starting date of Ending date of custody
entrusting for custody
trustee/contract entrusted/contra commission/co commission/co income/contract
party/outsourci income/contract
or cted assets ntracting ntracting ing income in
ng party ing income
this period
Shandong
Shandong
State-owned
Zhonglu
Assets Entrusted
Oceanic April 14, 2022 Fixed charges 849,056.60
Investment management
Fisheries Co.,
Holdings Co.,
Ltd
Ltd
(3)Related leasing situation
As the lessee, our company:
Unit:RMB
Variable lease
Simplified rental
Types payments not
fees for short-term
Name of included in the Interest expense on
leases and low Increased use
of leased measurement of Rent paid lease liabilities
value asset leases rights assets
lessor assets lease liabilities (if assumed
(if applicable)
applicable)
128
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Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun
t t t t t t t t t t
incurre incurre incurre incurre incurre incurre incurre incurre incurre incurre
d in d in d in d in d in d in d in d in d in d in
current previou current previou current previou current previou current previou
period s period period s period period s period period s period period s period
Zhong
tai
Xinch
eng Office
195,000 195,000
Asset buildin
.00 .00
Manag g
ement
Co.,
Ltd
Zhongt
ai
Xinche
ng
Asset
31,700. 28,700.
Manage Vehicle
00 00
ment
Co.,
Ltd
(4) Compensation for key management personnel
Unit:RMB
Item Amount incurred in current period Amount incurred in previous period
Compensation for key management
1,807,927.00 855,189.00
personnel
(5)Other related party transactions
Interest income
Name of item Related party Amount incurred in Amount incurred in
current period previous period
Income from deposit interest Dezhou Bank Co., Ltd 2721.96 1551.33
Total 2721.96 1551.33
6．Accounts receivable and payable of related parties
(1)Receivable
Unit:RMB
Closing balance Opening balance
Name of item Related party
Book balance Book balance
Bad debt provision Bad debt provision
129
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Shandong State-
Entrusted owned Assets
2,250,000.00 1,350,000.00 67,500.00
management fee Investment Holdings
Co., Ltd
XII. Commitments and contingencies
1．Important commitments
Significant commitments existing on the balance sheet date
As of the balance sheet date, there are no commitments that need to be disclosed.
2．Contingencies
(1)Significant contingencies on the balance sheet date
There are no significant contingencies that need to be disclosed by the company.
(2) The company should also explain if it has not any important contingencies that need to be disclosed
There are no significant contingencies that need to be disclosed by the company.
XIII. Events after the balance sheet date
1. Explanation of other events after the balance sheet date
As of the reporting date, there are no events after the balance sheet date that need to be disclosed.
XIV. Other Important Matters
1. Pension plan
According to relevant laws, regulations, and policies, our company has established an enterprise annuity system to pay
supplementary pension insurance (i.e. enterprise annuity) for employees on the basis of participating in basic pension insurance in
accordance with the law. A business efficiency coefficient is set based on the actual business situation every year, and the total
amount of enterprise contributions is calculated based on this business efficiency coefficient. The expenses that the company
should bear in the enterprise annuity have been disclosed in the payable employee compensation - defined contribution plan, and
the individual contributions of employees are withheld and paid by the company from their wages. During this reporting period, a
provision of 1.0473 million yuan was made for enterprise annuity. Refer to "20 of Note 7-Employee Compensation Payable" for
relevant disclosures.
130
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
2. Segment Information
(1)Basis for determining reporting segments and accounting policies
Our company's main business includes ocean fishing, seafood refrigeration processing trade, ocean shipping, and other
businesses. The company discloses segment reports based on the nature of its main business.
(2)Financial information of the reporting segment
Unit:RMB
Seafood
refrigeration Inter-segment
Item Ocean fishing Ocean shipping Others Total
processing offset
trade
I. Income from
184,991,696.92 63,548,295.62 241,209,101.28 125,297.96 -40,581,552.63 449,292,839.15
main business
II. Main
business cost 197,906,540.54 54,196,624.73 228,529,277.69 84,141.24 -45,374,781.52 435,341,802.68
III. Credit
-524,241.31 -4,381.36 227,560.57 11,676.90 -289,385.20
impairment loss
IV. Asset
impairment loss -2,699,370.85 -2,699,370.85
V.Depreciation
and
25,481,801.03 10,111,004.66 3,646,872.06 1,991,201.29 41,230,879.04
amortization
VI.Total profit
-20,369,653.74 11,641,660.07 6,147,085.83 -10,767,381.16 -13,348,289.00
VII.Income tax
475,405.11 623,705.42 1,099,110.53
expenses
VIII.Net profit
-20,369,653.74 11,166,254.96 5,523,380.41 -10,767,381.16 -14,447,399.53
-
IX.Total assets 1,123,948,41 345,451,317. 512,098,304. 674,928,286. 1,988,776,94
667,649,375.
3.10 60 40 20 5.81
50
-
X.Total 460,086,880. 106,713,554. 166,911,328. 603,655,092. 746,124,293.
591,242,562.
liabilities 15 79 36 98 53
75
XV. Notes to Main Items in the Parent Company's Financial Statements
1. Accounts receivable
(1)Classified disclosure of accounts receivable
Unit:RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Accrual Book Accrual Book
Proporti value Proporti value
Amount Amount proporti Amount Amount proporti
on on
on on
131
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Amon
g them:
Account
s
receivab
le of bad
debt
12,113,7 5,720,91 6,392,83 6,127,90 5,710,96 416,945.
provisio 100.00% 93.20%
51.41 5.76 5.65 7.51 2.49 02
n
withdra
wn by
combina
tion
Includin
g:
12,113,7 5,720,91 6,392,83 6,127,90 5,710,96 416,945.
Total 100.00% 93.20%
51.41 5.76 5.65 7.51 2.49 02
Bad debt provision withdrawn by combination：5,720,915.76
Unit:RMB
Closing balance
Name
Book balance Bad debt provision Accrual proportion
Non-related party
12,113,751.41 5,720,915.76 47.23%
combination
Total 12,113,751.41 5,720,915.76
If the bad debt provision of accounts receivable is made based on the general model of expected credit losses, please refer to the
disclosure methods of other accounts receivable to disclose the relevant information for bad debt provision:
Applicable Not applicable
Disclosure by aging
Unit:RMB
Aging Closing balance
Within 1 year (included) 6,424,733.40
Over 3 years 5,689,018.01
Over 5 years 5,689,018.01
Total 12,113,751.41
(2)Bad debt provisions accrued, recovered or reversed in the current period
Accrual of bad debt provision in current period:
Unit:RMB
Change amount of current period
Opening
Category Recovery or Closing balance
balance Accrual
reversal Write-off Others
Accounts
5,710,962.49 9,953.27 5,720,915.76
receivable
Total 5,710,962.49 9,953.27 5,720,915.76
132
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(3)Accounts receivable of the top five closing balances collected by the debtor
Unit:RMB
Proportion to total closing
Closing balance of accounts Closing balance of bad debt
Name of entity balance of accounts
receivable provision
receivable
Shandong Zhonglu
Oceanic(Yantai) Food Co., 5,749,741.00 47.46%
Ltd
PANDA CO.LTD 3,600,962.12 29.73% 3,600,962.12
SOCIETE DES
MAREYEURS 637,954.90 5.27% 31,897.75
GROSSISTES
Qingdao Haifeng Group Co.,
430,625.10 3.55% 430,625.10
Ltd
Lv Ming 158,154.98 1.31% 158,154.98
Total 10,577,438.10 87.32%
2. Other receivables
Unit:RMB
Item Closing balance Opening balance
Interest receivable 614,333.33
Dividends receivable 79,137,061.83 79,137,061.83
Other receivables 85,572,973.17 45,696,117.30
Total 165,324,368.33 124,833,179.13
(1)Interest receivable
1)Classification of interest receivable
Unit:RMB
Item Closing balance Opening balance
Loan interest 614,333.33
Total 614,333.33
2) Accrual of bad debt provision
Applicable Not applicable
(2)Dividends receivable
1) Classification of dividends receivable
Unit:RMB
Item (or invested entity) Closing balance Opening balance
Dividends receivable from subsidiaries 79,137,061.83 79,137,061.83
Total 79,137,061.83 79,137,061.83
133
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
2)Important dividends receivable with an aging of over 1 year
Unit:RMB
Whether impairment
Item (or invested Reason for non-
Closing balance Aging has occurred and its
entity) recovery
judgment basis
Funds necessary for
Dividends receivable ensuring the production No impairment
70,637,061.83 1-3 years
from subsidiaries and operation of occurred
subsidiaries
Total 70,637,061.83
3) Accrual of bad debt provision
Applicable Not applicable
(3) Other receivables
1) Classification of other receivables by nature of payment
Unit:RMB
Nature of payment Closing book balance Opening book balance
Internal transactions within the company 82,200,813.19 43,971,159.92
Reserve funds and others 6,940,621.60 5,325,703.48
Bad debt provision -3,568,461.62 -3,600,746.10
Total 85,572,973.17 45,696,117.30
2)Accrual of bad debt provision
Unit:RMB
Stage 1 Stage 2 Stage 3
Expected credit loss for Expected credit loss for
the entire duration (no the entire duration Total
Bad debt provision Expected credit loss in
credit impairment (credit impairment
the next 12 months
occurred) occurred)
Balance as of January
128,695.12 3,472,050.98 3,600,746.10
1, 2023
Balance as of January
1, 2023 in the current
period
Reversal in this period 32,284.48 32,284.48
Balance as of June 30,
96,410.64 3,472,050.98 3,568,461.62
2023
Changes in book balance with significant changes in loss reserves during the current period
Applicable Not applicable
Disclosure by aging
134
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Unit:RMB
Aging Closing balance
Within 1 year (included) 67,753,425.17
1-2 years 8,840,415.70
2-3 years 8,058.82
Over 3 years 12,539,535.10
Over 5 years 12,539,535.10
Total 89,141,434.79
3) Bad debt provisions accrued, recovered or reversed in the current period
Accrual of bad debt provision in this period
Unit:RMB
Change amount in this period
Opening
Recovery or Closing balance
Category balance Accrual Others
reversal Write-off
Other
3,600,746.10 32,284.48 3,568,461.62
receivables
Total 3,600,746.10 32,284.48 3,568,461.62
4) The receivables of top five closing balance collected by the debtor
Unit:RMB
Proportion to total
closing balance Closing balance of
Name of entity Nature of payment Closing balance Aging
of other bad debt provision
receivables
LAIF
FISHERIES Current
30,913,211.87 Over 0-3 years 34.68%
COMPANY accounts
LIMITED
AFRICA STAR
Current
FISHERIES 17,028,833.78 Over 0-3 years 19.10%
accounts
LIMITED
YAW ADDO
FISHERIES Current
8,693,131.15 Over 0-3 years 9.75%
COMPANY accounts
LIMITED
ZHONG GHA
FOODS Current
3,574,484.59 Over 0-3 years 4.01%
COMPANY accounts
LIMITED
Shandong
Provincial State-
Receivable
owned Assets 2,250,000.00 Within 1 year 2.52%
custody fees
Investment
Holding Co., Ltd
Total 62,459,661.39 70.06%
135
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
3. Long-term equity investment
Unit:RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment on
328,189,455.23 328,189,455.23 328,189,455.23 328,189,455.23
subsidiaries
Total 328,189,455.23 328,189,455.23 328,189,455.23 328,189,455.23
(1)Investment on subsidiaries
Unit:RMB
Change in increase/decrease in this period Closing
Opening Closing
Invested Accrual of balance of
balance Additional Reducing balance
entity impairment Others impairment
(book value ) investment investment (book value)
provision provision
HABITAT
INTERNATI 12,476,145.6 12,476,145.6
ONAL 0 0
CORP.
Shandong
Zhonglu
22,869,513.3 22,869,513.3
Aquatic
8 8
Shipping
Co., Ltd
Shandong
Zhonglu
Oceanic 55,448,185.2 55,448,185.2
(Yantai) 4 4
Food Co.,
Ltd
Shandong
Zhonglu
Haiyan 141,395,611. 141,395,611.
Oceanic 01 01
Fisheries
Co., Ltd
Zhonglu
Oceanic(Qin
gdao)
Industrial 96,000,000.0 96,000,000.0
Investment 0 0
and
Development
Co., Ltd
328,189,455. 328,189,455.
Total
23 23
4．Operating income and operating costs
Amount incurred in current period Amount incurred in previous period
Item
Income Cost Income Cost
136
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Main business 63,739,903.60 67,337,263.61 41,543,053.81 42,013,560.14
Other businesses 3,269,702.19 849,166.87 2,358,198.51 992,975.63
Total 67,009,605.79 68,186,430.48 43,901,252.32 43,006,535.77
Unit:RMB
Income-related information:
Unit:RMB
Category of contract Segment 1 Segment 2 Total
Type of commodity
Including:
Income from main
63,614,605.64 125,297.96 63,739,903.60
business
Income from other
3,269,702.19 3,269,702.19
businesses
Total 63,614,605.64 3,395,000.15 67,009,605.79
Information related to contract performing obligations:
There are no outstanding contract performing obligations.
Information related to the transaction price allocated to the remaining contract performing obligations:
The corresponding revenue amount for contract performing obligations that have been signed but have not yet been fulfilled or
fully fulfilled at the end of this report period is 0.00RMB. Among them, __ RMB is expected to recognize revenue in the year,
__ RMB is expected to recognize revenue in the year, and __ RMB is expected to recognize revenue in the year.
5．Investment income
Unit:RMB
Item Amount incurred in current period Amount incurred in previous period
Investment income of trading financial
1,076,034.24
assets during the holding period
Total 1,076,034.24
XVI. Additional information
1. Detailed statement of non-recurring profits and losses for the current period
Applicable Not applicable
Unit:RMB
Item Amount 说明 Remarks
Government subsidies included in
current profit and loss (excluding
government subsidies that are closely
related to the company's normal business
1,528,046.31
operations, complying with national
policies and regulations, and enjoyed in a
certain standard quota or quantity
continuously)
137
Full text of the Semiannual report of 2023, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Income from custody fees obtained from
849,056.60
entrusted operations
Other non-operating income and
expenses other than the above 526,435.99
Less: Income tax impact amount 133,125.10
Amount affected by minority
725,319.31
shareholders' equity
Total 2,045,094.49 --
The specific situation of other profit and loss items that meet the definition of non-recurring profit and loss:
Applicable Not applicable
The company does not have any specific cases of profit or loss items that meet the definition of non-recurring profit or loss.
Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information
Disclosure of Companies Issuing Securities to the Public as recurring profit and loss items
Applicable Not applicable
2. Earnings on equity and earnings per share
Earnings per share
Profit during the reporting Basic earnings per share Diluted earnings per share
ROE
period (RMB /Share) (RMB /Share)
Net profit attributable to
common shareholders of the -1.04% -0.0383 -0.0383
company
Net profit attributable to
common shareholders of the
-1.25% -0.0460 -0.0583
company after deducting non-
recurring profits and losses
3. Differences in accounting data according to domestic and foreign accounting standards
1)Differences in net profit and net assets in financial reports disclosed according to international
accounting standards and Chinese accounting standards
Applicable Not applicable
2) Differences in net profit and net assets in financial reports disclosed according to overseas accounting
standards and Chinese accounting standards
Applicable Not applicable
138
